Ethereum’s Price in Bitcoin Hits Multi-Year Low: Will the Gap Continue to Grow?

Ethereum’s Price in Bitcoin Hits Multi-Year Low, Investors Lose Faith

In a recent turn of events, Ethereum’s price in Bitcoin hit a multi-year low in April, sparking concerns among investors about the future of the world’s biggest altcoin. Several factors suggest that the gap between Ethereum and Bitcoin could become more pronounced in the coming months.

Investors are losing their faith in Ethereum as the cryptocurrency continuously fails to keep pace with Bitcoin’s outsized gains. The odds for a US spot Ethereum exchange-traded fund getting approved in May have dropped significantly, and Ethereum exchange-traded products suffered $34 million worth of outflows this past week, according to CoinShares data.

Luke Nolan, a research associate at CoinShares, noted that “ETH sentiment is anecdotally at the lowest it has been in years, despite recent developments such as the BUIDL fund by BlackRock.”

The decreasing optimism towards Ethereum comes as smaller altcoins, like Solana, have attracted investors who don’t expect Ethereum investments to yield as high returns as they did in the past.

In previous bull markets, Bitcoin has outperformed other cryptocurrencies at the beginning of the cycle, a trend that seems to be playing out again. The focus on Bitcoin has been catalyzed by inflows to the 10 US Bitcoin ETFs that launched on January 11, which have seen over $12 billion in inflows so far.

Ethereum’s price in Bitcoin, or ETHBTC, fell to a low of 0.046 in April, creating the biggest price gap between the two assets in almost three years. This means that since ETHBTC peaked in 2022, an investment in Bitcoin has outperformed Ethereum by 44%.

Despite the challenges facing Ethereum, there is still hope that the cryptocurrency could stop bleeding against Bitcoin in the future. The approval of a spot Ethereum ETF could help drive interest, with analysts expecting an ETF to be approved in 2025.

For now, traders will continue to closely monitor the ETHBTC chart for clues as to where the top two cryptocurrencies are heading next. Stay tuned for more updates on this developing story.