Bitcoin and Ethereum: Correlation Weakening Signals Shift Towards New Asset Class Status

In 2025, Bitcoin (BTC) and Ethereum (ETH) are demonstrating a significant weakening of their correlation, indicating a major turning point in the digital asset market. Institutional investors and regulatory clarity are playing pivotal roles in this shift, potentially shaping digital assets into a distinct, unique asset class. This trend signals a maturation of cryptocurrencies and their potential integration with traditional finance systems. 2025 saw increased activity from institutional players like exchanges, driving ETF trading volumes, which is further evidence of the increasing interest in crypto.