Ethereum’s Value Against Bitcoin Hits New Low
Recent data from CryptoQuant shows that Ethereum’s value against Bitcoin has dropped to a new low, with the ETH/BTC ratio falling to 0.027. This marks the weakest level in over five years.
Downward Trend After Proof-of-Stake Transition
The decline in Ethereum’s value against Bitcoin started after its transition to a proof-of-stake network in 2022. Since then, the ratio has decreased by nearly 70%, indicating a decrease in demand compared to Bitcoin.
Impact of Bitcoin ETFs on Ethereum
Following the approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the US, Ethereum has faced challenges. Bitcoin ETFs have attracted over $40 billion in investments and strong institutional interest globally, overshadowing Ethereum’s performance.
Ethereum’s ETF products were approved later and have received significantly lower investments compared to Bitcoin, further weakening its position in the market.
Analyst’s Perspective on ETH/BTC Ratio
Crypto analyst James Check, also known as Checkmate, highlighted that 77% of ETH/BTC trading days have been in negative territory. He described the recent drop as severe, raising concerns about Ethereum’s diminishing momentum.
