A new report by the research firm Delphi Digital looks at Ethereum in detail. One observation is the potential of the aether coin to outperform Bitcoin when the next bull run takes place soon.
This is due to the higher volatility of ethers compared to Bitcoin and the tendency for all cryptocurrencies to move in unison. The beta measurement of a cryptocurrency is related to volatility, and in the last six months the aether values were larger. Takes note of the report:
ETH has been much more volatile than BTC in the past six months. The 90-day beta compared to BTC is currently 1.5, well above its historical average.
In general, old coins such as Ethereum follow the price trend of Bitcoin – and this trend has been increasing lately.
In the past, there have been cases of coins resisting this trend, but these are more of an exception than the rule. The old coins tend to fall further in the bear markets, but can rise faster in the bull markets.
In the past eighteen months, Ethereum has faced volatility compared to Bitcoin. However, the report suggests that this could change.
We are … beginning to increase the volatility of the upward movement for the ETH. Given the extremely high intra-market correlations we discussed earlier, we are closely watching this trend as the ETH might outperform as BTCs increase.
Whether we see that Ethereum Bitcoin performs better in the short term, one can only guess. Now that the Constantinople's Fork is complete, the volatility can go down a bit.
We've certainly seen Ether mirroring the rest of the Altcoin market in recent days with impressive results, though not nearly as impressive as Litecoin's. Whether a full-blown bull market develops from this remains to be seen.
Like all predictions, we only know when it happens. Fortunately, it already has its own "may" – so it can never prove wrong.
What do you think? Tell us your opinion in the comments below!
Images courtesy of Coinmetrics.io, Delphi Digital, Shutterstock.
The review report suggests that Ethereum may outperform Bitcoin in the next bull market. The bull market first appeared on Bitcoinist.com.
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