Even though bitcoin (btc) and ethereum (eth) are still struggling to regain their all-time highs, there seems to be a clear fact between both assets now, as shown by the latest twitter.com/Matrixport_EN/status/1823269380165341316?ref_src=twsrc%5Etfw” target=”_blank”>data.
In particular, according to the recent report from Matrixport, ethereum is now showing larger price fluctuations compared to bitcoin in recent weeks.
ethereum's volatility surpasses bitcoin's
Volatility measures the price changes of an asset over time. Higher volatility indicates more significant price changes. According to data from Matrixport, the 30-day realized volatility spread between eth and bitcoin typically ranges between 1.0 and 1.5.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/Matrixport?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#Import matrix Today, August 13th: twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#ethereumVolatility exceeds twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin'stwitter.com/hashtag/Cryptoassets?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#Cryptoassets twitter.com/hashtag/cryptomarket?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#cryptomarket twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#btc twitter.com/hashtag/eth?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#eth image.twitter.com/QoKsuLUrAH
— Matrixport Official English (the only official x) (@Matrixport_EN) twitter.com/Matrixport_EN/status/1823269380165341316?ref_src=twsrc%5Etfw” target=”_blank”>August 13, 2024
This means that ethereum's price movements have been up to 50% more erratic than bitcoin's, suggesting that ethereum may offer a riskier market for investors.
This increased volatility is evident in the way ethereum reacts to market stimuli. In recent weeks, ethereum has shown higher levels of volatility than bitcoin.
<img class="wp-image-635295 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/08/1723644511_253_Data-shows-Ethereum39s-volatility-exceeds-Bitcoin39s-by-50-at-higher.png" alt="Volatility spread between ethereum and bitcoin” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=1619 1619w, https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/08/1723644511_253_Data-shows-Ethereum39s-volatility-exceeds-Bitcoin39s-by-50-at-higher.png 860w, https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/08/Screenshot-2024-08-13-at-18.20.23.png?w=1140 1140w” />
This distinction has become particularly noticeable since the start of the last bull market, when the price of ethereum experienced more drastic changes.
These rapid changes can significantly impact investment strategies, as ethereum’s larger peaks and valleys present different risk-reward scenarios compared to the relatively more stable bitcoin. Matrixport noted in the report:
Due to ethereum’s poor performance since the start of this bull market, this increased volatility has made it a less attractive asset. However, as long as the volatility ratio remains within this range, buying ethereum at the lower end of volatility could present an attractive opportunity.
bitcoin and ethereum performance
Meanwhile, over the week, both assets seem to almost mirror each other in price performance, with btc up 7.5% and eth up 7.9%.
However, there has been a noticeable difference in performance over the past 24 hours. During this period, bitcoin has risen by 2.8% to reclaim its price mark of $61,000. On the other hand, ethereum has risen by only 1.2%, reclaiming its price mark above $2,700.
The technical perspective on bitcoin twitter.com/rektcapital/status/1823409981258858639?ref_src=twsrc%5Etfw”>sample that the asset has now validated the setup for a possible bounce to higher levels.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#btc
bitcoin has successfully retested the channel bottom as support (green circle) to confirm an overall channel recovery.twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank”>$btc twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#Cryptocurrencies twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin https://t.co/CKXDAAOA9v image.twitter.com/ZCTQtKw580
-Rekt Capital (@rektcapital) twitter.com/rektcapital/status/1823409981258858639?ref_src=twsrc%5Etfw” target=”_blank”>August 13, 2024
Meanwhile, the technical outlook suggests that eth could remain stagnant. Cryptocurrency analytics platform known as More crypto Online on x x.com/Morecryptoonl/status/1823409177496080668″ target=”_blank”>noted:
bitcoin is clearly leading today. ethereum is still range-bound but could attempt a bullish breakout from here.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Data-shows-Ethereum39s-volatility-exceeds-Bitcoin39s-by-50-at-higher.jpeg" alt="ethereum chart shared by More crypto Online on x” />
Featured image created with DALL-E, chart by TradingView
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