Divergent On-chain Trends Within Ethereum/Bitcoin Network Add to Reasons Why the ETH/BTC Price Might Continue Dropping

cryptonews.com:

The exchange rate between Bitcoin (BTC), the world’s first and largest cryptocurrency by market capitalization, and Ether (ETH), the world’s second-largest cryptocurrency by market capitalization that powers the Ethereum blockchain, has fallen rapidly in recent weeks.

ETH/BTC was last changing hands on Binance (as per TradingView) around 0.0625, down around 15% from earlier monthly highs in the 0.0735 area and at its lowest level since July 2022. 

ETH/BTC’s downside isn’t a result of Ether performing poorly. On the contrary, at current levels in the $1,750s, Ether is up just shy of 10% this month and is up over 27% versus earlier monthly lows under $1,400.

The problem for Ether is that it, like most other cryptocurrencies, hasn’t been able to keep pace with Bitcoin. Bitcoin has been leading a charge higher in cryptocurrency markets amid what analysts have referred to as a “safe haven” bid as cracks form in the global banking system.

After three major regional US banks went under earlier this month, Credit Suisse was bought out by Swiss rival UBS over the weekend. Meanwhile, a consortium of US banks came together last week to provide a $30 billion bailout for US bank First Republic.

Despite efforts from authorities to calm the situation, investors remain on edge that more banks, in the US and elsewhere, might be about to go under. And while this is hampering sentiment in US stock markets, it is helping safe haven assets like gold, and also appears to be helping cryptocurrencies like Bitcoin.

Gold formed the bedrock of most civilizations’ financial systems for thousands of years, hence when troubles in the fiat-based, central bank-centered fractional reserve banking system surface, many investors like to flock back to gold,