Bitcoin and Ethereum's Relationship Is Doing Something Not Seen Since April 2021 -- It Could Trigger a Big Move for the World's Second-Largest Cryptocurrency

Cryptocurrencies like Bitcoin (CRYPTO: BTC) have absolutely taken off since Election Day. Investors are betting that a lighter and friendlier regulatory environment under the Trump administration will continue to boost the sector to new highs. Additionally, crypto is getting more exposure than ever before and many view Bitcoin as a potential hedge to inflation, which could still be an issue next year. Ethereum (CRYPTO: ETH), the second-largest cryptocurrency in the world, has an interesting relationship with Bitcoin. The two are not the same but are often grouped because they are seen as sector pioneers. The relationship between Bitcoin and Ethereum is now doing something not seen since April 2021, which could trigger a big move for Ethereum.Given their history and the fact that cryptocurrencies can be hard to value because they have no intrinsic value, many investors have looked for trends between the prices of Ethereum and Bitcoin. After all, groups of stocks are often compared to one another to determine relative valuation. A simple way to track Bitcoin and Ethereum is by looking at the relationship between Ethereum's and Bitcoin's prices by dividing the price of Ethereum by the price of Bitcoin. Seeing where this ratio has trended over time can offer clues as to which looks undervalued or overvalued relative to the other.Data source: TradingView. Chart by author. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool