The ratio between ether (ETH) and bitcoin’s (BTC) dollar-denominated prices continues to slide, extending year-to-date losses as suggested by the bearish death cross pattern a month ago. ETH/BTC slipped to 0.04563 on crypto exchange Binance soon before press time, reaching the lowest since April 2021. This year, the ratio has declined nearly 16%, indicating a bias for bitcoin or the leading cryptocurrency by market value.
According to Bloomberg data, global ether ETPs registered net outflows of $63.5 million last week, while bitcoin ETPs raked in $92.5 million. Factors like competing layer 1s and uncertainty about the debut of spot ETH approvals in the U.S. are likely responsible for ETH's decline in investor favor.
"The approval of spot bitcoin ETFs in the U.S. has reinforced bitcoin's store-of-value narrative and its status as a macro asset. On the other hand, open questions about ETH's fundamental positioning within the crypto sector remain...Competing layer-1s like Solana detract from Ethereum's positioning as the 'go-to' network for decentralized app deployment," said Coinbase Institutional's Research analyst David Han.
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