Sevens: Why Longing $ETH / Shorting $BTC Trades Are Important
Since July, ETH has significantly outperformed Bitcoin, with the ETH/BTC exchange rate rising 130% from the April low. The Sevens report indicates that this trend's impact has extended beyond the cryptocurrency sector.
Historically, a strong rise in ETH/BTC often precedes a surge in the stock market, followed by significant market corrections, including patterns seen before the sell-off in 2018, the crash in 2020, and the bear market in 2022.
The current rally coincides with a stock market rebound led by tech stocks, which is different from the lagging performance of ETH in 2023-24. Sevens warns that once the upward momentum of ETH/BTC fades, stock investors should remain cautious.
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