Price Performance Of Ethereum Exceeds Bitcoin's

As per macroeconomist Alex Kruger, Bitcoin became a macro asset a long time ago and traders can use it for trading Ethereum, which moves in line with BTC with greater volatility.

He shared a chart to show and explain his hypothesis that visualizes the movement of the Nasdaq index against ETHBTC. The chart shows the two assets have been moving "hand in hand."

He also states that ETH is a high beta of BTC as a result the asset shows the same movement on the market but with greater volatility. During the bull market having an investment in Ethereum is more beneficial rather than BTC as the first one shows greater returns compared to digital gold.

High volatility assets pile more risks on investors' shoulders, especially when the market enters a correction.  The comparison between Ethereum and Bitcoin has lost around 65% of their values since November.

When both the assets are compared, Ethereum showed a better result by gaining more than 60% of its value in the last few weeks, while Bitcoin is modestly consolidating with a 25% price increase.

This bear market showed something new to crypto traders as Ethereum's performance is greatly beating Bitcoin's, with the ETH/BTC pair showing a 145% increase in the last few weeks.

The reason behind its short-term rally on the second biggest cryptocurrency on the market is most likely tied to the upcoming release of a fundamental Merge update.

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice