Ethereum's Struggles: A Five-Year Low

In a dramatic shift within the cryptocurrency market, the ratio of ETH to BTC has dropped to a five-year low of 0.02193, signaling a significant underperformance by Ether

In a dramatic shift within the cryptocurrency market, the ratio of ETH to BTC has dropped to a five-year low of 0.02193.

This drop represents a 39% decrease in Ether’s value compared to Bitcoin over the course of 2025—a year that, until this point, many had thought would be a bull market for Ethereum. This is the first time in the 12 months following a Bitcoin reward halving that Ether has not managed to outperform Bitcoin. Historically, Bitcoin halving events have been associated with significant price increases for both assets, yet this time, Ethereum has lagged behind.

ETH/BTC drops to 5-year low of 0.02193. Ether is down 39% relative to bitcoin this year.

It's the 1st time ETH has underperformed BTC in the 12 months after a bitcoin reward halving. The last time ether underperformed bitcoin to a similar degree was in the…— Wu Blockchain (@WuBlockchain) March 31, 2025

Ethereum’s Struggles: A Five-Year Low

The plunge in the ETH/BTC ratio is remarkable since it registers the lowest point in five years, a depth not reached since Q3 2019. At that time, the ratio had plummeted to 0.0164, with Ether undergoing a quarterly drop of 46% compared to Bitcoin. And while we have moved on from that period, this latest nosedive in the ratio clearly signals that the market favors Bitcoin over Ether, which now seems to be lagging.

This year’s Ethereum underperformance is significant for a variety of reasons. Ether’s price has seemed principally directed, in terms of investor attention, toward Bitcoin. This happened in the wake of a halving event, when the reward for mining Bitcoin was reduced by half. Before we understood the potential of Ethereum, people thought of it as a digital asset, and its token was based on the types of things Bitcoin was capable of doing.

Ether’s fall against bitcoin underscores the latter’s growing dominance as the dominant cryptocurrency, especially following the recent halving. Over the years, Ethereum has asserted itself in folks’ minds as a close competitor to Bitcoin—but when you look at what happened to both these cryptos after both went through major halving events, it seems that Ethereum isn’t always on the same growth trajectory as Bitcoin. The decline in the ETH/BTC ratio signifies that more and more folks seem to be investing in Bitcoin instead of either Ethereum or its dark horse cousin.

Bitcoin’s Inflows Continue Amidst Outflows from Short-Bitcoin Products

Despite the fact that Ethereum is under pressure, Bitcoin still enjoys a steady stream of investment. Just last week, Bitcoin registered inflows of $195 million, which only emphasizes the fact that it’s still a highly desired and sought-after asset among investors. By comparison, short-bitcoin investment products have seen outflows for four weeks running, with the last week totaling $2.5 million. This juxtaposition reflects a much broader and developing shift in investor sentiment. More market participants than ever appear to be bullish on Bitcoin’s long-term prospects.

Bitcoin saw inflows totalling US$195m last week, while short-bitcoin investment products saw outflows for a 4th consecutive week totalling US$2.5m. Recent price falls have pushed bitcoin global ETP’s total assets under management to their lowest level since just after the US…— Wu Blockchain (@WuBlockchain) March 31, 2025

The Bitcoin inflows are impressive and suggest that both retail and institutional investors have confidence in the asset. This is especially the case in light of the most recent halving event. The halving, which happened in April 2025, generally indicates a tighter supply and a potential future surge in the value of Bitcoin, making it an appealing investment right now. Its status as a store of value and a hedging mechanism against inflation remains robust, with such global conditions enabling and perhaps even enhancing its attractiveness.

The reverse trend is developing, however, for short-bitcoin products, which have now experienced four consecutive weeks of outflows. This trend might indicate a growing faith in Bitcoin’s resilience and a move away from bets that hinge on Bitcoin’s decline. Investors who once sought to profit from what they thought was an inevitable decline in the cryptocurrency’s price might now be reconsidering their strategies, especially as the cryptocurrency continues to show signs of a recovery after the recent halving.

Bitcoin’s Assets Under Management Fall to Lowest Level Since U.S. Election

Though a lot of money has come in, the total amount of capital now inside global ETPs (exchange-traded products) tied to Bitcoin has dropped. These days, Bitcoin has just $114 billion in total AUM (assets under management), which is the lowest that number