Movements in the tech-heavy Nasdaq 100 tend to have a greater impact on ethereum ETH 0.00% prices than Bitcoin BTC -0.54% prices, according to a new report from CME Group.
“ETHBTC tends to rise on days when tech stocks are up, as ETH outperforms BTC,” CME senior economist and executive director Erik Norland said in the report.
Norland pointed out that the difference between ethereum and Bitcoin can be explained by how ethereum and Bitcoin are supplied to the market and then used, pointing to the practical application of the ethereum smart contract network.
Bitcoin, on the other hand, is primarily used as a “highly volatile” store of value and a hedge against fiat debasement.
While both Bitcoin and ethereum are known for wild price swings, the ratio between the two has remained nearly stable compared to daily volatility of about 30 percent over the past year, the report said.
In comparison, Bitcoin prices are up 42 percent and ethereum prices are up 59 percent.
