Why did Bitcoin and Ethereum both rise and fall at the same time (why did Bitcoin and Ethereum rise so much)
Why do Bitcoin and Ethereum rise and fall at the same time Why do Bitcoin and Ethereum rise and fall at the same time? Because in 2017, the price trends of the two Cryptocurrency are very similar
In the whole time since 2018, the growth of both currencies has been relatively small, which is mainly due to the price difference between the two Cryptocurrency (from $1 in 2017 to $2 in 2019) Unlike Bitcoin, there is no direct upward relationship between the two; And over time, they will also compete with each other; However, when we consider the trading volume and market depth of these assets, we find that they have not changed much. Therefore, despite this difference, it can help investors better understand the asset classes and their potential opportunities, risks, and potential economic impacts of hedging in their investment portfolios Although the current market situation of Bitcoin is relatively stable, there has been a clear correlation between the two until the first quarter of 2018. According to data provider Skew, as of September 22, the BTC/USD trading pair has increased by nearly 60% since the beginning of the year Despite some recent declines in ETH/USD, ETH has still risen significantly by over 30% in the past month and rebounded to a historic high again in the third quarter of 2020. (CryptoPotato)
Why did Bitcoin and Ethereum rise so much According to CoinMarketCap data, after the BTC price reached approximately $30000 on May 13, 2019, the price of Bitcoin soared to a high of nearly $40000 in less than an hour (at that time, Bitcoin had already fallen from around $10000 to $20000). In the past two weeks, ETH has also experienced several significant rebounds, with Ethereum trading at $27.37 as of the time of publication. Why buy it at such a high price? The main reason is that the recent price trends of Bitcoin and Ethereum are similar to the bull market in 2017. However, with the rise of DeFi and the influence of various factors since 2020, Bitcoin and Ethereum are far better than other mainstream currencies: Bitcoin and Ethereum. The main reasons for the strong performance of Bitcoin and Ethereum this year are:
First, institutional investors are increasingly interested in digital assets Secondly, central banks around the world are actively printing money to inject funds into the economic development of emerging economies, which is making Bitcoin a “safe haven” investment choice
Third, the entry of institutional investors has led more and more traditional financial companies to pay attention to Cryptocurrency such as Bitcoin Fourthly, Bitcoin ETF application has been approved by the US SEC Fifth, driven by the entry of institutional investors, the market has seen some new development directions. Therefore, we believe that many retail investors in the market are still in a wait-and-see state. If they do not understand what these new growth opportunities are, it is best not to rush to pursue new projects that can develop in the long term Another issue we don’t know is that Bitcoin and Ethereum still have a long way to go! Because it is still in an early stage of development – the early bull market has just begun; Secondly, Ethereum itself is not particularly famous, so its founder Mark Zuckerberg is also a firm supporter of Cryptocurrency, and has been committed to developing Ethereum 2.0; Finally, the Bitcoin community is discussing how to improve the Ethereum protocol to make it more suitable for future applications. Although the transaction speed on Ethereum’s network is not as fast as people think, it seems that this can be explained as the “counterfeit currency season”. Bitcoin and Ethereum, the two public chains, have been the most prominent Cryptocurrency in the past year
First of all, since 2019, the market of Bitcoin and Ethereum has remained strong. Since the beginning of 2019, the price of Bitcoin has been climbing rapidly, reaching a maximum of over $19200 by the end of November, an increase of over 10%, followed closely by Ethereum. Since late December last year, its cumulative increase has reached around 20%. As the most popular Cryptocurrency, Ether is also popular with many media. However, it is worth noting that Bitcoin has been around for more than 10 years since its inception, and its price has never surpassed the historical high of the previous bull bear market.
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