The ETH / BTC ratio, a key measure of Ethereum (ETH) for Bitcoin (BTC), remained below 0.05 for more than a year, highlighting Ethereum’s struggle to gain ground against the greatest cryptocurrency even during what many analysts have described as a “ Ethereum season. ”.
According to Bitget chief analyst Ryan Lee, the role of Bitcoin as a “anchor asset” on the market explains why Ethereum continues to delay. He also shared with Beincrypto what conditions would be necessary for ETH to finally fill the gap.
Why the ETH / BTC ratio remains depressed after a year
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It should be noted that the ETH / BTC ratio serves as a barometer for the feeling of investors. When the ratio increases, this suggests that investors promote Ethereum compared to Bitcoin, often due to the high demand for evolution such as staggered, DEFI activity or wider optimism in altcoins.
Conversely, when the report decreases, it indicates that Bitcoin is surpassed. This can reflect the feeling of risk, where investors prefer the relative security of Bitcoin or do not expect stronger yields.
In April, Beincrypto stressed that metrics fell to a 5 -year hollow in the midst of the difficulties of the ETH prices. However, what happened afterwards is a notable recovery. The ratio even went as high as 0.043 on August 24, coinciding with the top of all ETH (ATH).
However, despite the record performance of the ETH, the ratio could not cross the threshold of 0.05, a level seen for the last time in August 2024. At the time of writing the editorial moment, the metric had fell slightly at 0.038.
But what’s behind the lag? Bitget chief analyst Ryan Lee observed that although more than $ 4 billion flocked in the funds (ETF) negotiated in exchange for Ethereum in August, the relative underperformance of the asset highlights the greatest attraction of Bitcoin to prudent investors in the midst of an uncertain macro environment.
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This strengthens the status of Bitcoin as an “anchor” of the industry. Meanwhile, Ethereum’s long -term potential is linked to the growing adoption of its defi and tokenization ecosystem.
“The ETH / BTC ratio remaining less than 0.05 for more than a year, even if Ethereum reaches record peaks and attracts billions of FNB entries, underlines the lasting position of Bitcoin as an ultimate crypto value store,” said Lee to Beincryptto.
The analyst explained that the chances of Ethereum to shrink the evaluation gap may depend on the inputs of quarterly FNB exceeding $ 9 billion, the fluid implementation of upgrades of the upcoming network and the substantial growth of tokénized assets and challenge volumes.
“Such catalysts would give ETH a platform to outdo the BTC, supplementing the story of the value of the Bitcoin value with a demand focused on public services,” he added.
Lee has added that wider macro-woves will be crucial to shape market prospects. Today, a price drop of 25 long -awaited points from the Federal Reserve would reduce loan costs and inject liquidity, creating a support environment for risk assets.
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In such a scenario, Bitcoin could go to a range of $ 150,000 to $ 200,000 by the end of the year, while Ethereum could reach $ 5,800 to $ 8,000, driven by ETF entries and the continuous expansion of networks.
“Together, these trends reflect a mature market where the growth of Bitcoin and Ethereum stimulates the tandem industry, provided contained inflation stays and no major geopolitical shock disturbs the feeling,” said Lee to Beincrypto.
ETH / BTC ratio at a crossroads: Altcoin season Ahead or Breaish Breakdown?
Meanwhile, some analysts anticipate an imminent increase in the report. In an article on X (formerly Twitter), an analyst stressed that after an increase of 150%, the ETH / BTC ratio was negotiated on the side.
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He suggested that the rally is still intact. However, the analyst plans that Bitcoin will take the lead for a while before Ethereum resumed, the next highest step probably starting at the end of October or early November.
Another analyst led to parallels to the 2021 cycle, when similar eth / BTC training announced an Altcoin season.
However, not all views are optimistic. Analyst Colin Talks Crypto warned against a model of head and shoulders, a configuration generally considered to be lower. If confirmed, this could indicate a momentum and the possibility of a trend reversal, indicating that Ethereum could lose ground against short -term bitcoin.
Thus, the ETH / BTC ratio remains at a crossroads. While the entries of ETFs, the growth of the challenge and macro liquidity could provide Ethereum the momentum to challenge the domination of the bitcoin, the graphic models and the prudence of the investors suggest that risks remain. For the moment, the ratio reflects a market still weighing if the public service of Ethereum can overcome the role of anchoring of Bitcoin as a value store of the cryptographic industry.
