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<div class="cryptonews"> 
 <p><strong>A CME Group report shows that the ETHBTC pair is heavily influenced by various factors, including tech stock performance, the US dollar strength, and Bitcoin (BTC) supply changes.</strong></p> 
 <h2 class="wp-block-heading" id="ethbtc-tracks-tech-stocks">ETHBTC tracks tech stocks</h2> 
 <p>Cryptocurrency enthusiasts often monitor the performance of technology stocks as it significantly influences ethereum’s value more than bitcoin’s. </p> 
 <p>According to Erik Norland, a senior economist and executive director at CME Group, ETH is likely to rise against BTC, on days when tech <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s surge.&nbsp;</p> 
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  <img decoding="async" loading="lazy" src="https://thebittimes.com/image/getimage/?url=https://lh5.googleusercontent.com/6ZyoPwHaD4Pptn3qDAoO8dphleNE3M_-D9JauPqfbu3hFKv5ddYeqMKz81FohiELgyc0gst9ggmVh7jZ3MfjSc0q4TPEort4T2ZPtGCsFxmgqI7fYMZ6nbkOBzGIw6WGQRoaJlbx-xv-5ep0L6j0eMo" alt="CME Group: ETHBTC reacts to tech stocks, USD, and Bitcoin supply changes - 1" width="787" height="474"> 
  <figcaption class="wp-element-caption">
    Source: CME Group 
  </figcaption> 
 </figure> 
 <p>The different effects on Ethereum and bitcoin are due to their distribution and utility. </p> 
 <p>The analyst highlighted the practical use of Ethereum’s smart contract network, contrasting bitcoin’s main function as a highly fluctuating store of value and defense against fiat depreciation.&nbsp;</p> 
 <p>While both coins are recognized for their volatile prices, their exchange rate appears fairly steady, with about 30% daily volatility over the past year, compared to bitcoin’s 42% and ethereum’s 59%. </p> 
 <p>He further observed that Ethereum typically climbs even higher, and when Bitcoin descends, Ethereum usually drops more severely.&nbsp;</p> 
 <p>However, the correlation between the two cryptocurrencies has been tight over the past year at 0.85.</p> 
 <h2 class="wp-block-heading" id="us-dollar-s-influence">US dollar’s influence</h2> 
 <p>The report suggests that Ethereum is more vulnerable to fluctuations in the US dollar, and the ETHBTC rate is more affected by changes in bitcoin’s supply than ether’s supply. </p> 
 <p>The analyst picks out that a stronger USD negatively impacts ETH more than BTC.</p> 
 <p>The correlation between ETHBTC and interest rates, gold, and crude oil futures is minimal. Norland observed that Ethereum’s <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a> tends to increase after its price rises, indicating that price changes drive <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a> rather than the other way around.</p> 
 <p>Lastly, if BTC price surges ahead of its next halving in April 2024, as it has trends in the past, this could further boost Ethereum’s relative price.</p> 
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 <h2 class="wp-block-heading" id="impact-of-supply-changes-on-ethereum-and-bitcoin">Impact of supply changes on Ethereum and Bitcoin</h2> 
 <p>According to the report, ETHBTC might <a rel="noopener noreferrer nofollow" title="react" href="https://thebittimes.com/tag/react.html">react</a> more strongly to changes in BTC’s <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a> than to changes in ETH’s <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a>. This is because changes in BTC’s economics greatly influence the ETHBTC exchange rate.&nbsp;</p> 
 <p>The supply of BTC, which is perfectly inelastic and predetermined by its algorithm, along with its halving events, has resulted in significant price run-ups and subsequent bear markets. </p> 
 <p>Additionally, the number of daily transactions on the BTC blockchain, a potential proxy for BTC demand, might also influence ETH prices.</p> 
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
  <div class="wp-block-embed__wrapper"> <iframe loading="lazy" title="How Bitcoin Works And What Affects Its Price? | Explained" width="1020" height="574" src="https://www.youtube.com/embed/yRgZP8lB2OY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
  </div> 
 </figure> 
 <p>The Ethereum <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a> has not been a driving factor behind its price behavior during its proof-of-work (PoW) era. Instead, the ETH <a rel="noopener noreferrer nofollow" title="supply" href="https://thebittimes.com/tag/supply.html">supply</a> increased when prices were higher relative to BTC, and vice versa.</p> 
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CME Group: ETHBTC reacts to tech stocks, USD, and Bitcoin supply changes

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