Ethereum to Bitcoin Ratio drops to 3-year low as BTC nears $100,000

The incoming administration of President-Elect Donald Trump is anticipated to be supportive of the cryptocurrency industry, which provided significant financial backing to various high-profile candidates in the recent elections, including Trump himself. As a result, the price of Bitcoin has surged in the weeks following the 2024 presidential election, with it currently trading above $97,000 and inching closer to the $100,000 mark. Many analysts believe that this increase is driven by optimism surrounding Trump’s pro-crypto stance compared to the previous administration under President Joe Biden.

This political shift coincides with potential changes in the regulatory landscape for cryptocurrencies. Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), has faced criticism for his strict regulatory approach. However, following Trump’s victory, Gensler announced his resignation, which is expected to lead to a more favorable regulatory environment for the crypto market. With these shifts in leadership and regulatory oversight on the horizon, industry experts are hopeful that Bitcoin will continue to rise and potentially reach $100,000 in the coming weeks.

In addition to these developments, there have been notable fluctuations in the ETH/BTC price ratio, which measures the value of Ethereum relative to Bitcoin. Recently, the ratio plummeted to 0.032, marking a three-year low. Georgy Slavin-Rudakov, Chief Marketing Officer at B2BINPAY, highlighted that this decline is primarily due to Bitcoin’s dominance in the market, driven by the rising trading volume of spot Bitcoin ETFs.

Slavin-Rudakov also noted that Ethereum is competing with Solana as a smart contract platform and as a store of value against Bitcoin. Currently, many large investors are shifting their funds from Ethereum to Bitcoin, indicating a preference for Bitcoin at this time. Looking ahead, Slavin-Rudakov mentioned that Ethereum has been showing upward momentum after a period of stability, with potential targets ranging between $3,600 and $4,000. He emphasized that Ethereum may continue to grow, especially if Bitcoin’s rally slows down. However, if Bitcoin corrects, Ethereum could outperform, leading to a rebound in the ETH/BTC ratio.