The correlation between Bitcoin and Ethereum rates fell below 80%

The correlation between the rates of the two most popular cryptocurrencies has historically been high, but the indicator has been falling for more than two months and has almost reached 80%. This is the lowest level in a year and a half.

«The 30-day moving average correlation between bitcoin and ether fell below 80% this week,» Kaiko analysts say. The indicator shows how close the prices of two assets move together.

Kaiko analysts believe that the drop in the correlation between the largest cryptocurrencies was the result of the US banking crisis, which led to an increase in investments in safe-haven assets, including BTC. In addition, the divergence of rates was influenced by the Shanghai update in the Ethereum network, which allowed users to withdraw coins from staking. This was the most anticipated update in the second cryptocurrency’s network this year.

The drop in the rate indicates that a diversified cryptocurrency portfolio should include both coins, Kaiko experts believe.