there is no direct correlation really but i have read a theory once which i think is the closest thing to possibly what happens:
bitcoin price goes up, BTC-ETH is worth for example 0.071BTC that means the value of ETH is increasing in USD so you have the illusion that its price is rising.
additionally that rise creates an arbitrage opportunity (a 3 way arbitrage one) BTC/ETH ETH/USD USD/BTC. and this method of arbitrage brings the price up in all markets to reach a balance: decreases the higher one and increases the lower one to reach the balance. that is why ETH goes from 0.071 to 0.0716 for example while its USD value (as i said above) is rising in a fake manner so it reaches $486 just because bitcoin went up.
Topic: Price correlation (Read 133 times)
You'll see on how the exchanges are dominant with BTC/ETH trades.
BTC/any altcoin or ETH/any altcoin and that's why the market seems to be good for these two coins.
BTC/any altcoin or ETH/any altcoin and that's why the market seems to be good for these two coins.
When people buy crypto, some buy only Bitcoin. Then Bitcoin grows and altcoins, including Ethereum, don't.
But many times people diversify their investment. And then, after Bitcoin, Ethereum is one of the first choices, having a good chance to look sometimes correlated with Bitcoin.
But many times people diversify their investment. And then, after Bitcoin, Ethereum is one of the first choices, having a good chance to look sometimes correlated with Bitcoin.
There is no direct correlation at all. ETH can be used to raise your amount of BTCs with proper trades. Thats in my opinion the reason why those currencies often pump/dump at the same time.
Market doesn't necessarily move due to anything, it can just be market sentiment. Even though sometimes they can move due to good news or bad news, obviously. Price correlation is usually when btc pumps most alts pump with btc, and viceversa. But sometimes when btc pumps, alts bleed, and vice versa. Confusing as hell but if you get the concepts its rather simple
Why recently market seems to gorw for both Bitcoin and Ethereum ? How the prices are correlated ?
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