How does the beta of Ethereum differ from the S&P 500?

3 answers

• Donna UpchurchJan 28, 2025 · 5 months ago
  The beta of Ethereum measures the volatility of its returns compared to the overall stock market, represented by the S&P 500. A beta greater than 1 indicates that Ethereum tends to be more volatile than the market, while a beta less than 1 suggests lower volatility. This means that Ethereum's price movements are expected to be more extreme compared to the broader stock market. It's important to note that beta only measures systematic risk and does not take into account other factors that may affect Ethereum's performance.
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• Boone HobackApr 24, 2024 · a year ago
  When it comes to the beta of Ethereum versus the S&P 500, it's like comparing apples to oranges. The S&P 500 represents a broad index of stocks, while Ethereum is a specific digital currency. Beta measures the correlation between the returns of two assets, so comparing Ethereum's beta to the S&P 500's beta can give you an idea of how Ethereum's price movements relate to the overall stock market. However, it's important to consider that cryptocurrencies like Ethereum have their own unique factors that can influence their volatility and performance.
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• Hossameldin MegahedJun 15, 2025 · 16 days ago
  The beta of Ethereum, just like any other asset, is a measure of its sensitivity to market movements. A beta greater than 1 indicates that Ethereum tends to move more than the overall stock market, while a beta less than 1 suggests it moves less. In the case of Ethereum, its beta is influenced by factors specific to the cryptocurrency market, such as regulatory developments, technological advancements, and investor sentiment. It's worth noting that beta is just one metric to consider when evaluating the risk and potential return of an investment in Ethereum or any other asset.
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