- ETH/BTC Price Drop: The exchange rate between Bitcoin (BTC) and Ether (ETH) has fallen rapidly in recent weeks, currently trading at its lowest level since July 2022.
- Financial Stability Concerns: Recent developments in the global banking system are hampering sentiment in US stock markets but helping safe haven assets like gold and cryptocurrencies like Bitcoin.
- Ether Beyond Bitcoin: Ether is a highly robust, highly decentralized payment system that operates entirely separately from the traditional financial system. It even goes beyond Bitcoin as an independent decentralized finance ecosystem can be built directly on to it.
Ether & BTC Exchange Rate Dropping
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.
Financial Stability Concerns Disproportionately Benefit Bitcoin
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. This is hampering sentiment in US stock markets but also helping safe haven assets like gold as well as cryptocurrencies like Bitcoin which many refer to as “digital gold”.