Although Bitcoin (BTC) and Ethereum (ETH) are still struggling to reclaim their all-time highs, there seems to be a clear reality between both assets now, as shown in the latest Data.
In particular, according to a recent Matrixport report, Ethereum is now experiencing greater price volatility compared to Bitcoin in the past weeks.
Ethereum Volatility Outperforms Bitcoin
Volatility measures the changes in asset prices over time, with higher volatility indicating more significant price changes. According to data from Matrixport, the 30-day realized volatility difference between ETH and Bitcoin typically ranges from 1.0 to 1.5.
#MatrixSport Today is August 13: #EthereumFluctuations ‘exceed’ #Bitcoin‘s#cryptoassets #cryptocurrency market #Bitcoin #Ethereum pic.twitter.com/QoKsuLUrAH
— Matrixport Official English (The only official version of X) (@Matrixport_EN) August 13, 2024
This means that Ethereum price movements were 50% more volatile than Bitcoin price movements, suggesting that Ethereum may present a riskier market for investors.
This increased volatility is evident in the way Ethereum reacts to market catalysts. Over the past few weeks, Ethereum has shown higher levels of volatility than Bitcoin.
This distinction has become particularly noticeable since the start of the recent bull market, where the price of Ethereum has seen more radical shifts.
These rapid changes can have a significant impact on investment strategies, as Ethereum’s larger peaks and troughs present different risk-reward scenarios compared to the relatively more stable Bitcoin. Matrixport noted in the report:
Given Ethereum’s poor performance since the start of this bull market, this high volatility has made it a less attractive asset. However, as long as volatility remains within this range, buying Ethereum volatility at the lower end could be an attractive opportunity.
Bitcoin and Ethereum Performance
Meanwhile, over the week, both assets appear to be almost mirroring each other in price performance, with BTC up 7.5% and ETH up 7.9%.
But there was a noticeable difference in the performance of the past 24 hours. During this period, Bitcoin rose by 2.8% to regain its price of $61,000. On the other hand, Ethereum rose by only 1.2% to regain its price of more than $2,700.
Bitcoin Technical Forecast Offers The asset has now proven the validity of a potential bounce setup to higher levels.
Bitcoin successfully retested the channel bottom as support (green circle) to confirm the overall channel recovery.Bitcoin #cryptocurrencies #Bitcoin https://t.co/CKXDAAOA9v pic.twitter.com/ZCTQtKw580
— Rekt Capital (@rektcapital) August 13, 2024
Meanwhile, technical forecasts suggest that ETH may remain stuck. Cryptocurrency analysis platform known as More Crypto Online on X male:
Bitcoin is clearly the leader today, while Ethereum is still stuck in the range but may try to break out from here.
Featured image created using DALL-E, chart from TradingView