The value of ethereum against bitcoin has fallen to all-time lows as market anticipation grows for an imminent launch of a US spot exchange-traded fund.
Data from Paris-based crypto intelligence platform Kaiko showed that the eth/btc ratio has steadily declined since the smart contract-enabled blockchain moved to a proof-of-stake network in September 2022. Over the past 24 hours , the metric fell to 0.048, its lowest point since May 2021.
The eth/btc ratio is a crucial metric for gauging the performance of ethereum relative to bitcoin. When this ratio increases, ethereum gains strength or holds its value better than bitcoin, suggesting a market preference for eth over btc.
Conversely, a decrease in the eth/btc ratio indicates the weaker performance of ethereum compared to bitcoin, potentially indicating that investors are leaning towards the perceived security of bitcoin.
This relationship goes beyond simple price movements as it summarizes changes in investor confidence and market sentiment between these two prominent cryptocurrencies.
CryptoSlate Data shows that the price of btc has far surpassed that of ethereum over the past year. During the period, the price of the leading cryptocurrency rose over 170% to a 21-month high of over $47,000, while eth was able to post a modest 74% gain.
btc's positive streak could be attributed to surrounding market optimism and demands for the possible approval of a spot ETF. In recent months, several asset managers, including BlackRock, VanEck, Grayscale and others, have actively engaged the US Securities and Exchange Commission (SEC) regarding the filings, fueling speculation that these products could begin shipping as soon as January 11. .
On the other hand, ethereum's tepid price performance came amid the launch of several futures-based ETFs for the digital asset last year. These ETFs barely made any impact on the market as they saw lukewarm demand, forcing asset manager CoinShares to describe eth as the “least loved altcoin” compared to rivals like Solana.
