Ethereum-Bitcoin ratio drops to historic low as ETF approval speculation heightens

Ethereum’s value against Bitcoin has dropped to historical lows as market anticipation grows for an imminent launch of a spot exchange-traded fund in the U.S.

Data from Paris-based crypto intelligence platform Kaiko showed that the ETH/BTC ratio has steadily declined since the smart-contract-enabled blockchain transitioned into a proof-of-stake network in September 2022. During the last 24 hours, the metric dropped to 0.048, its lowest point since May 2021.

How To Get Free Crypto  

Ethereum/Bitcoin Ratio (Source: Kaiko)

The ETH/BTC ratio is a crucial measure for gauging Ethereum’s performance in relation to Bitcoin. When this ratio rises, Ethereum gains strength or maintains its value better than Bitcoin, suggesting a market preference for ETH over BTC.

Conversely, a decrease in the ETH/BTC ratio indicates Ethereum’s weaker performance compared to Bitcoin, potentially signaling investor leanings toward the perceived safety of Bitcoin.

This ratio goes beyond mere price movements as it encapsulates shifts in investor confidence and market sentiment between these two prominent cryptocurrencies.

CryptoSlate’s data shows that BTC’s price has greatly outperformed Ethereum’s over the past year. During the period, the top cryptocurrency’s price rose by more than 170% to a 21-month high of more than $47,000, while ETH was able to post a modest gain of 74%.

Coinbase Banner  

BTC’s positive run could be attributed to the surrounding market optimism and demands for the potential approval of a spot ETF. Over the past several months, several asset managers, including BlackRock, VanEck, Grayscale, and others, have actively engaged the U.S. Securities and Exchange Commission (SEC) over the applications, fueling speculations that these products could begin trading as early as Jan. 11.

On the other hand, Ethereum’s lukewarm price performance came amid the launch of several futures-based ETFs for the digital asset last year. These ETFs barely made a ripple in the market as they saw tepid demand, forcing asset manager CoinShares to describe ETH as the “least loved altcoin” compared to rivals like Solana.

Go to Source
Author: Oluwapelumi Adejumo

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.