@nicholsdas
The anticipation of U.S. rate cuts has tightened the correlation between Bitcoin and Ethereum. Historically, BTC has reacted more strongly to macro shifts, while ETH followed tech-like growth dynamics. In 2025, both assets are increasingly moving in sync with Fed policy signals, reflecting a convergence in investor behavior. Rate cut optimism drives risk-on positioning, boosting both coins simultaneously. This shortening reaction lag suggests markets treat ETH as a higher-beta BTC proxy. The trend underscores how macro liquidity dominates crypto cycles, blurring differences between “store of value” and “utility” narratives. Still, sector-specific catalysts like L2 growth can re-introduce divergence.
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