@zephyra123
Recent cryptocurrency market fluctuations show Bitcoin and Ethereum’s correlation strengthening, driven by shared macroeconomic factors like regulatory shifts and institutional interest. Data indicates a 30-day correlation of ~0.85, up from 0.65 last quarter. This high correlation reduces diversification benefits in portfolios holding both assets, increasing systemic risk during downturns. Investors should balance exposure with uncorrelated assets like stablecoins or traditional equities to mitigate volatility. Monitoring macroeconomic trends and on-chain metrics, such as holder accumulation, can guide dynamic portfolio adjustments.
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