In the latest development, crypto market analysts from Skew have stated that the ETH-BTC correlation has dropped below 50% for the first time since January 2018. The drop in the correlation indicates that we might be heading for a bull-run ahead very soon. The only time, the ETH-BTC correlation dropped below 0.5 was before the bull-run of 2017.
Ether / #bitcoin correlation < 50% for the first time in nearly three years
High correlation is usually a symptom of a market in correction pic.twitter.com/LybhbQuPUH
— skew (@skewdotcom) November 25, 2020
The report from Skew comes just at a time as Bitcoin (BTC) rice once again swings above $19,000 levels. At press time, BTC is trading 3.23% higher at $19,144 as the altcoin market enters a correction. The ETH-BTC price correlation is one of the key parameters to determine future market movement as they are the two biggest cryptocurrencies.
The recent drop in the correlation could probably signal the return of the bulls in the broader cryptocurrency market. Well, the signs are clearly visible as November has been an exciting month so far for Bitcoin and altcoin investors. Following the Bitcoin rally in the first two weeks of November, the altcoin market followed the bull rally over the last week.
Bitcoin has been flirting around $19,000 for the last three days as investors have been waiting for a move above its all-time high of $20,000. Historical chart patterns show that every time BTC has crossed its previous ATH, it has rallied significantly the year after.
Here's what happened the last two times that #bitcoin closed a monthly candle above the previous all time high candle. This is happening now. pic.twitter.com/M95JXZgkkk
— Lark Davis (@TheCryptoLark) November 25, 2020
Another popular Bitcoin analyst and author of the Stock-to-Flow model, PlanB, has said that BTC can cross $100K levels by the end of 2021. While reiterating his stand, PlanB notes that the BTC bull run will soon start in January 2021.
Current #bitcoin price action is nice, but we are waiting for a real jump (like the red arrows early 2013 and 2017). IMO that will be the start of the real bull market, and indeed phase5. January 2021? pic.twitter.com/orzwdCOcvP
— PlanB (@100trillionUSD) November 22, 2020
CME Bitcoin Futures Volumes Hit All-Time High
In other news, the CME Bitcoin (BTC) Futures have clocked an all-time high volume of $1.8 billion with open interest at $1.2 billion on Tuesday, November 24.
CME #bitcoin futures all-time high for volumes ($1.8bln) and open interest ($1.2bln) yesterday pic.twitter.com/JmKxIth8cR
— skew (@skewdotcom) November 25, 2020
The spike in the open interest indicates the outstanding contracts waiting for settlement. This clearly indicates that more money flowing to BTC as traders can expect a surge in Bitcoin’s volatility. The institutional interest in Bitcoin (BTC) is already on the rise over the last few months. The Grayscale Bitcoin Trust (GBTC) has also attained a new milestone of over $10 billion worth of assets under management.
