Ethereum-Bitcoin Ratio Drops To Five-Year Low
%Ethereum (CRYPTO: $ETH ) price has fallen 39% this year relative to %Bitcoin (CRYPTO: $BTC ), taking the ratio between the two largest %Cryptocurrencies to its lowest level in five years. The drop in the Ethereum-Bitcoin ratio comes as investors sell out of riskier assets such as crypto and move into cash or safer bets such as bonds and exchange-traded funds (ETFs). At the current level, one Ethereum is the equivalent of 0.02191 Bitcoin. That's the lowest level since May 2020, when Ethereum was trading around $200 U.S. and Bitcoin under $10,000 U.S. Currently, Ethereum is trading at $1,800 U.S. and Bitcoin is around $82,000 U.S. The current slump between the two digital assets is especially notable because it's the first time ever that Ethereum’s price has weakened against Bitcoin in the 12 months after a halving event. On April 20, 2024, the payment Bitcoin miners received for harvesting the cryptocurrency on the blockchain was reduced by 50%. In previous halving events, Ethereum outperformed Bitcoin in the following year. That hasn’t happened this time and the ratio of Ethereum to Bitcoin has fallen by more than 50%. Tariff uncertainty, signs of returning inflation, and elevated bonds yields have driven investors out of stocks and crypto in recent weeks. At the same time, the price of gold bullion, viewed as the ultimate safe haven asset, has climbed to record highs. The last time Ethereum underperformed Bitcoin to this degree was in the third quarter of 2019, when the ratio dropped to 0.0164, a quarterly decline of 46%. The price of Ethereum has dropped 44% so far this year, while Bitcoin’s price has decreased 10% on the year.