Although the association between the stock market and Bitcoin (BTC) is often included when examining the performance of the biggest cryptocurrency, Ethereum (ETH) is surpassing the Nasdaq index by a significant margin.
Tom Dunleavy, a crypto analyst at Messari said on October 17 that Ethereum had outperformed the Nasdaq by almost 20% since mid-July, a time during which the stock market has seen a decline.
While markets have declined over the previous three months, ETH has remained stable.
In fact, Finbold revealed in August that the Nasdaq was among the worst-performing indexes in the first seven months of 2022, with a YTD loss of -20.80%, behind Bitcoin’s YTD loss of -48.6%.
Meanwhile, the total returns of the Nasdaq 100 index, which represents the technology sector, fell 34.15 percent year-to-date (YTD) in 2022, after achieving an annualized return of more than 23 percent for the previous 13 straight years.
Nevertheless, the Nasdaq Index had its biggest daily return since July during the October 17 trading session, resulting in an uptick in stock futures trading that persisted the next day after a chaotic week, although experts remain sceptical about the rally’s durability.
Intriguingly, Dunleavy also highlighted that Ethereum had a correlation of 88% with real rates — the profits that investors obtain from long-term government bonds after accounting for inflation, which has just risen to its highest level since 2011, further diminishing the appeal of equities.
According to CoinMarketCap statistics acquired by Finbold on October 18, Ethereum was trading at $1,327 at press time, an increase of 0.72% for the day and 3.24% for the previous week.
In the last five weeks, the price of the decentralized finance (DeFi) asset has declined by 25% owing to shark and whale addresses selling more than $4 billion worth of ETH tokens.
Also Read: EU Will Issue Draft Laws Restricting Bitcoin’s Energy Use
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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