What's driving crypto - BTC | ETH
Bitcoin Drivers
Short-dated yields | TOP DRIVER
Insights
18-06-2026
CONCEPT
Crypto is more than just social media pumps. Here we strip away the noise to track its fundamental drivers: sentiment, inflation or interest rates. Identifying which variable is in the driver’s seat allows for more disciplined, data-driven trading.
CURRENT READINGS
- Short-term: over the past four weeks, the daily relationship between Stock prices (rising) and the Bitcoin price (falling) has been mild - their correlation is 0.35. Longer-term: for context, their one-year daily relationship has been present, if negative, with a correlation of -0.64.
MARKET IMPLICATIONS
- Recently, short-term bond yields, tightening on the back of immediate growth, rates and inflation expectations, have been the main influencing factor driving the Bitcoin price. Zooming out to last year, market sentiment in stocks (via the S&P 500) has been. In general terms, the Bitcoin acts as a liquidity sponge and as a store of value. It positively tracks QE liquidity injections (with a lag), risk-on equity environments, a weaker USD, falling real yields.
Ethereum Drivers
Short-dated yields | TOP DRIVER
Insights
18-06-2026
CONCEPT
Refer to the intro above.
CURRENT READINGS
- Short-term: over the past four weeks, the daily relationship between Stock prices (rising) and the Ether price (falling) has been weak - their correlation is 0.30. Longer-term: for context, their one-year daily relationship has been irrelevant with a correlation of -0.46.
MARKET IMPLICATIONS
- Recently, short-term bond yields, tightening on the back of immediate growth, rates and inflation expectations, have been the main influencing factor driving the Ethereum price. Zooming out to last year, given the weak correlations with a number of key drivers, the cryptocurrency has moved in an independent fashion in the period, influenced by ad-hoc news and developments.. In general terms, the Ether acts as a yield-bearing utility asset. It positively tracks risk-on equity environments and lower yields.