@emerald20phoenix
Recent cryptocurrency market volatility, as of March 11, 2025, has highlighted evolving correlations between Bitcoin (BTC) and Ethereum (ETH). Historically, BTC and ETH exhibited a high correlation (around 0.9), driven by shared market sentiment and liquidity. However, posts on X and market data suggest a divergence: BTC increasingly tracks U.S. equities (e.g., S&P 500), while ETH oscillates between equities and altcoins. This shift stems from institutional BTC adoption and ETH’s DeFi-driven utility. For portfolios, this reduces BTC-ETH diversification benefits, pushing investors to allocate across uncorrelated assets (e.g., privacy coins) or Layer 2 projects. Monitor real-time trends to adjust risk exposure dynamically.
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