<ul><li>The correlation between Bitcoin and Ethereum has drastically decreased from 0.63 on January 1st to 0.05 as of May 22, 2025, indicating a significant divergence between the two cryptocurrencies.</li><li>This deviation suggests that Ethereum is now more influenced by internal factors like protocol upgrades, regulations, and DeFi trends rather than being closely tied to Bitcoin's movements.</li><li>While Bitcoin has seen growth in 2025, Ethereum and its Layer 2 ecosystem have either underperformed or remained stagnant, leading to investor uncertainty and concerns about Ethereum's future performance.</li><li>The breakdown in correlation could impact retail investors and ecosystem developers, potentially hindering confidence and adoption of Ethereum and shifting capital flows more towards Bitcoin-centric strategies.</li></ul>

Bitcoin and Ethereum Correlation Breaks Down, Marking Key Turning Point

Discover more