A report released this week has suggested that Ethereum (ETH) wll overtake Bitcoin (BTC) if a bull run come to fruition.
Delphi Digital, a New York-based digital asset research company, has released an in-depth report on Ethereum and made the claim in page 12 of the report and linked it to Ethereum’s volatility.
The report stated:
“In the past six months, ETH’s volatility has also been significantly higher than BTC. ETH’s 90-day Beta has reached 1.5 relative to BTC, which is much higher than its historical average (although ETH appears to be relatively short).
Delphi digital has assessed the fluctuations with their Beta Coefficient which is a tool for assessing the systematic risk of securities to measure the volatility of a portfolio of securities or an investment portfolio relative to the overall market.
The report titled: ‘High Beta Risk-Reward” points to market correlation, backing up research done by Longhash which talks about how the market correlation between Bitcoin price and other tokens price is at an all time high. So, therefore it can tell you a lot about where the coin will end up should a bull market arise.
The Delphi Digital report goes onto say:
“ETH’s volatility when BTC prices fell was greater than when BTC prices rose. However, we began to see an increase in beta when ETH rose. Considering the high correlation within the cryptocurrency, we can make predictions, at least in the short term, if the market rebounds, the ETH rebound is likely to exceed the BTC.”