Bitcoin and Ethereum separation reach the historical point – what does this mean for investors?
Since the beginning of this cycle, Ethereum’s performance is not a secret compared to Bitcoin. However, when this tendency fell into a sign of $ 3,000 at the beginning of the year, the BTC became the most prominent at the beginning of the year when it continued to move over $ 100,000.
When the Bitcoin price lost $ 100,000 in the first quarter, the value of Ethereum had already fallen close to $ 2,000. While the leading crypto currency has recently reached the highest level of all time, the “King of Altcoins” faces a significant resistance of around $ 2,800.
Will Diverjans lead to the revaluation of investment strategies?
The price growth rate of both assets in the last few weeks and months gives an idea of the diminishing relationship between Bitcoin and Ethereum. Chain analyst Carmelo Aleman at a new QuickTake Post on the Cryptoquant platform partner There was a disintegration between the two largest crypto currencies in the world.
Aleman described the correlation in his post:
The correlation is a statistical measure of the relationship between the two variables. In financial analysis, it helps to determine whether the two assets move in the same direction (positive correlation), negative correlation or independently (close to zero).
Historically, Bitcoin and Ethereum have always continued a strong positive correlation – usually over 0.7. This long -term tendency explains why most of BTC’s movements have been reflected in the price of Ethereum for the last few years.
Source: CryptoQuant
However, Aleman said that there has been a separation between the first two beings since the beginning of this year. The BTC-Alds correlation matrix (annual) data shows that the correlation was 0.63 on January 1, 2025 before falling to 0.05 by 22 May 2025.
Source: CryptoQuant
From the investment perspective, this great difference disrupts one of the most consistent patterns of the crypto market and leads to the re-evaluation of strategies based on Bitcoin-Eteum correlation. “At the same time ETH’nin BTC’yi also adds uncertainty for investors who can not expect to follow BTC,” he added.
Analyst on the chain said:
Portfolio models, risk strategies and return forecasts should now adapt. This may also reflect how Ethereum is directed by its internal factors such as regulation or defi.
Aleman also stated that this change has increased the risk of ether and related assets to miss the bull markets. This effect was largely seen in 2025, when the price of Bitcoin climbed, while the value of other subcoins related to ETH and Ethereum usually stopped or decreased.
Bitcoin and Ethereum Price
As of this article, Bitcoin and Ethereum are worth $ 107,450 and $ 2.507, respectively. While the price of BTC increased more than 5% last week, the value of ETH increased less than half in the same period.
The price of BTC against ETH on the daily timeframe | Source: BTCETH chart on TradingView
The prominent picture from Istock, tradingView chart
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