Latest Delphi Digital Study: Ethereum (ETH) May Outperform Bitcoin (BTC) in Next Crypto Bull Run
As per an all-new Ethereum-centric study released by New York-based alt-asset research firm Delphi Digital, the premier cryptocoin is exhibiting a number of technical indicators that could potentially help the asset outperform bitcoin if a crypto market rally were to be witnessed in the near future.
According to a page in Delphi Digital’s aforementioned report titled ‘High Beta Risk-Reward’, ETH’s beta indicators seem to suggest that the currency has been experiencing way more volatility than BTC over the past 180 days. In this regard, the report goes on to state:
“ETH has also been significantly more volatile than BTC over the last six months. It’s 90-day beta relative to BTC is currently 1.5, substantially higher than its historical average (though price history is limited),”.
As a general rule of thumb, one should remember that almost all cryptocurrencies tend to move in a similar direction when a particular market trend starts to set in. This phenomenon, as per LongHash, has become glaringly obvious over the recent past since many digital tokens have now begun to reach their “highest levels of sustained correlation to bitcoin since their inception”. As a result of this, it is nearly impossible to find a digital asset that will not follow Bitcoin’s movements— especially from a volatility standpoint.
In addition to this, it is also worth remembering that alt-assets have a tendency to fall further than Bitcoin during bear markets while rising faster than it during bull runs.
Image Courtesy: Delphi Digital
Last but not least, Delphi Digital’s report goes on to mention that over the course of the past 18 months or so, Ethereum has largely been experiencing downside volatility against bitcoin. However, as per the firm’s latest findings, all that might change within the coming few months.
“We are, however, beginning to see upside volatility pick up for ETH. Given the extremely high intra-market correlations we previously discussed, this is a trend we are monitoring closely as ETH may be poised to outperform if BTC rallies,”