Ethereum Co-Founder: There Could Be An Ethereum-Bitcoin Exchange Rate
Recently, the CME Group shed light on the factors affecting the Ether-Bitcoin (ETH-BTC) exchange rate, identifying some fascinating findings. Firstly, it seems that high tech stock performance may be beneficial to Ethereum (ETH) more than Bitcoin (BTC). This may be due to the vast practical applications of ETH, thanks to its Ethereum smart contract network, which has garnered significant attention as blockchain 2.0 with capabilities that reach beyond simply a method of storing value.
In direct contrast, USD increases in strength significantly decreasing the ETHBTC rate, perhaps due to the contrast in the ways in which ETH and BTC are supplied to the market. Additionally, the CME report highlights the inverse relationships between the two cryptocurrencies’ supplies and exchange rates – with BTC’s predetermined, perfectly inelastic supply and ETH’s theoretically endless supply.
Lastly, insight has been provided into macroeconomic and market conditions relating to BTC and ETH. Notably, the two shot up in 2020 jointly as central bank rates were slashed, with ETH defying BTC somewhat in performance. Additionally subsequently staged events such as the collapse of regional banks in 2023 opened a minor boost soon to also die down. There is however still a layer of uncertainty surrounding these two currencies once the macro landscape changes.
