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 relation to Bitcoin.
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.
The ETH/BTC ratio dropped to a five-year low of 0.02193. Ether has fallen 39% relative to bitcoin this year. It's the first 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
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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 Bitcoin’s price might now be rethinking 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 has been since pretty much right after the elections in the U.S. The price of Bitcoin has, of course, fallen since then, and the price has definitely not been stable in the time since. With ETPs obviously linked to the price of the underlying asset, this lack of stability (and the total drop in price) has led to a drop in total AUM for Bitcoin globally.
The drop in AUM for Bitcoin ETPs could also be due to investors being hesitant to commit a significant portion of their portfolios given the current regulatory uncertainty surrounding the crypto space. While the most recent inflows into Bitcoin ETPs show that there are still institutional investors out there willing to trust in the long-term safety and value of a Bitcoin-like instrument, the reduced AUM also signals that a fair number of investors seem to prefer a more cautious, wait-and-see approach.
Despite the market’s volatility, Bitcoin largely remains the unchallenged number one in the cryptocurrency world. As a once-in-a-lifetime financial innovation, Bitcoin continues to be not only the largest digital asset but also the most recognized. For many, it remains the very foundation of the still-nascent cryptocurrency market. Yet Bitcoin’s assets under management, or AUM, have decreased, indicating that the level of investor interest in the digital financial tool is also decreasing.
What Does This Mean for the Future of Ethereum and Bitcoin?
Ether and Bitcoin perform differently, which leads to unavoidable questions about the future of both cryptocurrencies. Bitcoin stays on top, keeping the momentum it had when it was halved. In contrast, the Ethereum network underperforms (as does the Ether coin). When we look at the ETH-to-BTC trading ratio, we can see that it’s in decline, suggesting that Ethereums future is holding them back. When compared to what Bitcoin is doing at this present moment, the situation becomes even more glaring.
Ethereum’s path forward may require novel innovations and strategies to keep it competitive in the crypto space. Its worth as the leading platform for decentralized applications and smart contracts is still quite solid. But Ethereum’s second act—to secure its place alongside Bitcoin as a truly dominant cryptocurrency—may require a payoff and a redefinition of its role that secures not just the fame of its founder, Vitalik Buterin, but also the future of the platform he invented.
The future is still looking bright for Bitcoin, but the drop in AUM (assets under management) shows that not everyone is comfortable pouring more money into it. The investors who are still pouring money into it certainly seem to be taking it more in the way one might invest in gold, given the high fixed costs of mining Bitcoin, and the drop in issuance that is forecast to occur after the next halving. A huge question, though, is what will happen with inflation. If inflation rises significantly in the near future, and Bitcoin doesn’t go up much in price, it will be much less viable as an investable asset.
Conclusion: A Market in Transition
The fluctuating ETH/BTC ratio, moves in the opposite direction, and Bitcoin inflows continue to show just how complex and volatile the crypto market is. Nothing is certain, and the promise of Ethereum 2.0 is a big one. That said, should it take effect and realize its potential, Ethereum 2.0 will not restore Ethereum’s former glory and dominance overnight. Nothing less than the total overhaul of the system and a whole lot of time is going to get it there, if it gets there at all.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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