Bitcoin-ether correlation dips below 80% for first time in 18 months

Quick Take

  • Bitcoin’s rolling 30-day correlation with ether fell below 80% this week for the first time since November 2021, according to Kaiko.
  • The falling correlation shows the two biggest cryptocurrencies are becoming less dependent on each other, with their prices moving in different directions more often.

The correlation between bitcoin and ether prices fell below 80% for the first time since November 2021, indicating a significant shift in the relationship between the two largest cryptocurrencies.

The rolling 30-day correlation between bitcoin and ether dipped to about 78% this week, according to data provider Kaiko. Correlation measures how closely the prices of two assets move together. When the correlation is low, it means their prices are moving in different directions more often.

In other words, the falling correlation means that BTC and ETH prices are not moving together as closely as they used to. 

Bitcoin-ether correlation falling

Last month, Coinbase analyzed the correlation between BTC and ETH returns. The exchange concluded that it has been falling since mid-to-late March as bitcoin began to outperform other cryptocurrencies against the backdrop of U.S. banking sector turmoil and heightened regulatory scrutiny on non-bitcoin cryptocurrencies.


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"But the decline of that relationship has become more pronounced in the days following the Shanghai (Shapella) fork, reminiscent of a similar trend observed in September 2022 during the Merge (when Ethereum changed its consensus mechanism to proof-of-stake)," Coinbase said at the time.

Theoretically, a falling correlation between two assets reinforces the case for diversification by including both assets in an investment portfolio.

Bitcoin and ether prices are up around 62% and 50% so far in 2023, respectively, according to The Block's Data Dashboard.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.


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