Bitcoin ATH Drags ETH/BTC To Lowest Point In 3 Years
As Bitcoin (BTC) reached a new all-time high (ATH) of $98,310 today, the ETH/BTC trading pair fell to multi-year lows, raising questions about the relative strength of the second-largest digital asset, Ethereum (ETH).
What’s causing Ethereum’s underperformance relative to Bitcoin?
Earlier today, Bitcoin’s new ATH was just $2,000 away from the coveted $100,000 mark. However, BTC’s continued dominance resulted in altcoins, especially Ethereum, underperforming throughout the year.
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The weekly chart below shows that the ETH/BTC trading pair has fallen to multi-year lows of 0.0331, a level last seen in March 2021. The pair has failed to form new highs since December 2021, reflecting over 60%.
The pair’s losses have accelerated since July 2024 as Bitcoin prices surged amid growing optimism over the prospects of crypto-backed Republican candidate Donald Trump in the U.S. presidential election.
this success The rise in Bitcoin exchange-traded funds (ETFs) has also contributed to institutional preference for Bitcoin relative to other cryptocurrencies. Currently, the total net assets held by BTC ETFs exceed $100 billion.
While Ethereum ETFs have also received regulatory approval, their level of success has not yet matched that of Bitcoin ETFs. For example, the total cumulative net assets of the U.S. Spot Ethereum ETF to date is only $8.96 billion.
Other factors, such as the April 2024 Bitcoin halving – which reduces miner rewards from 6.25 BTC to 3.125 BTC – further strengthen the argument that BTC supply is scarce. In contrast, Ethereum’s rising issuance rate has some experts questioning its “ultrasonic currency” status.
Other factors such as Bitcoin halved In April, miner rewards were slashed from 6.250 BTC to 3.125 BTC, further reinforcing the argument that the digital asset is in scarce supply. In contrast, Ethereum’s rise The issuance rate has some experts questioning its “ultrasonic currency” status.
When will Ethereum recover its losses relative to Bitcoin?
With the ETH/BTC trading pair hitting new lows, Ethereum traders are eager to know when ETH will regain its lost ground. Several analysts shared their views on X.
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Cryptocurrency analyst @CryptoGemRnld recently Confirmed Two strong areas of support: trendline support and the demand box area. The analyst said that the ETH/BTC pair has been bouncing off these levels since 2017, which typically leads to altcoin season.
Likewise, experienced trader Peter Brandt suggestion The ETH/BTC ratio may be nearing a bottom. Brandt’s analysis predicts a possible reversal in December, with the trading pair starting an upward trajectory.
Recent data supports this outlook express ETH is likely undervalued at current prices. Limited ETH inflows into exchanges, coupled with the lack of significant profit taking, suggest that ETH bulls are waiting for further gains.
Additionally, the spot ETH ETF has Record There was a huge inflow of funds, attracting more than $515 million between November 9 and 15. At press time, ETH was trading at $3,333, up 7.4% in the past 24 hours.
Featured images from Unsplash, charts from Tradingview.com
