• Exchange rate between Bitcoin (BTC) and Ether (ETH) has fallen rapidly in recent weeks.
• Financial stability concerns disproportionately benefit Bitcoin, which is increasingly viewed as a safe haven asset.
• Ether can also make the claim to be robust, decentralized, and independent of the traditional financial system.
Dropping ETH/BTC Price
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
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, which many view as the ultimate haven. But Bitcoin, which many refer to as „digital gold“, is increasingly viewed as a safe haven. After all, it is a highly robust, highly decentralized payment system that operates entirely separately from the traditional financial system.
Ether can also make the claim to be robust