BTC’s Compounded Annual Growth Rate Hits Record Low at 8% Over Four Years

Bitcoin’s Four-Year CAGR Sinks to Record Low as ETH/BTC Ratio Hits Five-Year Lows

Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has declined to an all-time low of 8%, according to Glassnode data, marking a significant slowdown in long-term returns.

The four-year CAGR is tracked in alignment with Bitcoin’s halving cycles, which tend to shape market trends. In March 2021, Bitcoin was trading near $60,000 at the peak of its previous cycle. With BTC now hovering around $80,000, its CAGR has contracted, reflecting the asset’s maturing market and decreasing volatility.

The choice of reference points also plays a role. While Bitcoin’s CAGR appears low now, 2021’s data captured an overheated market phase, whereas the current price may be forming a cycle bottom.

Ethereum (ETH) has also struggled, with the ETH/BTC ratio turning negative at -6% CAGR. ETH’s price has remained mostly flat since February 2021, currently sitting below $2,000.

The ETH/BTC ratio now stands at 0.024, its lowest since late 2020, highlighting Ethereum’s prolonged underperformance relative to Bitcoin.