Traders Turn Risk-Averse, Driving Ether/Bitcoin Ratio to 5-Year Lows: Van Straten

Ethereum Falters Against Bitcoin, ETH/BTC Ratio Hits Lowest Point Since 2020

Ethereum is losing ground in the crypto market as investors shift toward safer digital assets, pushing the ETH/BTC ratio to 0.02191, its lowest level since May 2020. The slump marks a dramatic turn for ether (ETH), which has dropped 39% against bitcoin (BTC) this year alone.

This performance breaks with historical patterns. In previous bitcoin halving cycles, ETH typically outpaced BTC in the months following the reward cuts. But since the most recent halving in April 2024, when miner rewards were reduced to 3.125 BTC, bitcoin has dominated while ether has struggled to gain traction.

The trend reflects broader macroeconomic anxieties, from tariff war concerns to stubborn inflation and high bond yields. As uncertainty grows, investors are prioritizing liquidity and perceived safety—traits bitcoin currently offers more than ether.

“Bitcoin is increasingly seen as crypto’s version of gold,” said analysts, noting gold itself has hit record highs recently. Meanwhile, ether’s underperformance is becoming one of the worst quarterly stretches against BTC in years, echoing the declines of late 2019 when the ETH/BTC ratio bottomed at 0.0164.

Ethereum isn’t just losing ground to bitcoin. Competitor layer-1 platforms like Solana are gaining momentum. The SOLETH ratio—which tracks Solana’s SOL against ether—is up 24% year-to-date, highlighting a rotation away from ETH even as SOL has dropped 35% in price during the same period.

As 2025 unfolds, Ethereum’s relative weakness is becoming harder to ignore—and for some investors, it’s prompting a reevaluation of where the smart money should be parked.