Both Bitcoin and Ethereum show high levels of price volatility, though each responds differently to market catalysts. Bitcoin reached its all-time high of over $100,000 in December 2024 before correcting to $85,600 in March 2025. Its price closely follows macroeconomic signals, such as interest rate shifts, monetary policy, and inflation concerns. Institutions treat Bitcoin as a long-term hedge rather than a trading asset.
Ethereum exhibits stronger short-term swings, largely due to its active ecosystem. Projects building on Ethereum constantly launch tokens, applications, and platforms. Each update or partnership announcement influences Ethereum’s price. Ethereum also reacts to internal events, such as network congestion, new token standards, or successful deployments of high-profile dApps.