Dogecoin aligns with Bitcoin’s rise, while Ethereum drifts lower.
Bitcoin’s New Milestone
Bitcoin (BTC) achieved a record price of $93,970.91 on Nov. 19, climbing 3% in just 24 hours. This increase surpassed its previous high from a week ago by approximately $500.
Altcoin Performance and Trends
While Bitcoin surged, Solana (SOL) saw a 2.7% increase, hitting $244. Ethereum (ETH), however, remained stagnant, slipping 0.1% to $3,128.78. Ethereum also faced a 5% decline over the past week, contrasting with Bitcoin’s momentum.
Dogecoin (DOGE) exhibited strong correlation with BTC, gaining 10.7% to reach $0.408 — its highest since June 2021. According to DefiLlama, DOGE’s correlation with BTC stood at an impressive 0.99 over the past month.
Diverging Correlations
CryptoQuant’s CEO, Ki Young Ju, noted Ethereum’s three-year low correlation with Bitcoin, registering a Pearson correlation coefficient of 0.3. “Just because BTC is strong doesn’t mean you should buy ETH,” he advised, highlighting how each cryptocurrency follows a distinct trajectory.
Dogecoin, in contrast, continued to move in sync with BTC, fueled by investor optimism and heightened market activity.
ETF Boost for Bitcoin
Bitcoin’s surge coincided with the start of options trading on BlackRock’s iShares Bitcoin Trust ETF (IBIT). Analyst Eric Balchunas observed a bullish trend in the options market, with a call-to-put ratio of 0.17, signaling strong interest in BTC’s growth.
Trading volume for IBIT’s options exceeded $446 million on its first day, reinforcing bullish sentiment for Bitcoin’s continued ascent.
Market Outlook
The divergence in performance between major cryptocurrencies underscores Bitcoin’s dominance and emerging patterns in the crypto ecosystem. Analysts anticipate further volatility as market forces play out.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
