Ethereum (ETH) Plummets Under Crucial Threshold Against Bitcoin (BTC)
Ethereum, the second-largest cryptocurrency, is experiencing a decline against the dominant Bitcoin, marking a significant shift in the market dynamics. The ETH/BTC ratio has dropped below the crucial 0.04 BTC level for the first time in three and a half years.
Ether, often seen as Bitcoin’s primary competitor for the top cryptocurrency spot by market value, has been unable to surpass the original cryptocurrency’s dominance. The concept of Ether overtaking Bitcoin gained traction during the ICO craze in mid-2017 when Ether came close to becoming the most valuable cryptocurrency by market capitalization.
Despite several near opportunities, including in early 2018 and during the DeFi and NFT hype in 2021, Ether has never managed to dethrone Bitcoin from its top position. The long-anticipated shift in market leadership seems unlikely to occur in the foreseeable future.
According to Alex Thorn, head of research at Galaxy Digital, the ETH/BTC pair has plummeted by 53% since The Merge, a significant upgrade that transitioned Ethereum from proof-of-work to proof-of-stake in September 2022. Earlier this year, Ether faced challenges with spot ETFs underperforming due to substantial outflows.
Bitcoin maximalist Tuur Demeester has predicted a further decline in Ether’s price, suggesting it could drop to 0.03 BTC. This forecast comes amidst the ongoing struggle for Ether to regain its momentum against Bitcoin.
The current market dynamics indicate a continued dominance of Bitcoin over Ethereum, with the latter facing hurdles in reclaiming a significant market share. Despite past speculation about a potential shift in leadership, Ether’s recent performance suggests that Bitcoin’s reign as the leading cryptocurrency remains unchallenged.
