CME Report: The ETH/BTC exchange rate is related to the performance of tech stocks, the strength of the dollar, and the supply of BTC

ChainCatcher news, CME Executive Director and Senior Economist Erik Norland released a report titled "Three Factors Driving the ETHBTC Price Relationship." The report points out that the ETH/BTC exchange rate is closely related to macroeconomic factors and driving factors related to the structure of the cryptocurrency market itself, specifically including the performance of tech stocks, the strength of the dollar, and BTC supply.

Among them, the rise in tech stocks is more favorable for BTC strength, while the dollar has a stronger negative effect on BTC. The sensitivity of ETHBTC to BTC supply is greater than that of ETH.

In addition, the exchange rate is also strongly linked to macroeconomics. During the quantitative easing implemented in 2020, ETH experienced a larger increase, while during the subsequent period of interest rate hikes and balance sheet reductions, BTC strengthened. Multiple bank failures have led the market to return to BTC's original vision.