Bitcoin price close the week lower
Bitcoin price recently declined 0.42% on moderate daily volume. Overnight prices traded in a tight range between $19,500 and $19,800. Prices declined 0.85% before reversing the course during the next hour. At the time of writing, BTC is changing hands at $20,025.
BTC/USD 4-hour chart | Source: TradingView
ETH fell 3% on Friday, with the price declining 15% over the last seven days. BTC, by comparison, declined 0.80%, with a seven- day performance of -3%. BTC and ETH are down 59% and 60% in value for the year to date, respectively. The recent divergence in performance is illustrated in the decline in the two assets’ correlation coefficient to 0.77. ETH has been outperforming BTC for months, and the ETH/BTC trading pair rose 53% between July and September.
There are fundamental arguments as to why the correlation between the two assets should diminish. Ethereum’s conversion to a proof-of-stake consensus mechanism puts in place a distinctly different method of securing the network than exists with Bitcoin. The ability for ETH holders to stake their assets allows ETH to be used both as a store of value as well as a means to generate cash flow. A potential result is that staking yields may have an increased impact on the demand for ETH in both spot and futures markets. That distinction alone may change the way traders view the assets, though the extent to which they do remains to be seen.
The overall cryptocurrency market cap stands at $971 trillion, and Bitcoin’s dominance rate is 39.4%.
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