Historical Bottom Came in Bitcoin with 8%: Ethereum at 5-Year Low! - Coin Bulletin

While Bitcoin's (BTC) four-year compound annual growth rate fell to an all-time low of (CAGR) %8, the Ethereum-Bitcoin ratio also hit the bottom of the last 5 years.

The two most important assets in the cryptocurrency markets, Bitcoin (BTC) and Ethereum (ETH), are making headlines with data that is worrying investors. According to the latest report from the on-chain analysis platform Glassnode, Bitcoin's four-year compound annual growth rate (CAGR) is currently at a record low of 8%. This situation is explained by the decreasing price volatility of Bitcoin over time and the increasing maturity of the crypto asset.

The current low growth rate of Bitcoin is especially related to the reference periods being compared. BTC, which traded at around 60 thousand dollars in March 2021, was close to the peak of the bull market at that time. Today, with Bitcoin price hovering around 80 thousand dollars, it may be seen as the bottom of the cycle. Therefore, periodical peaks and troughs are determining factors when calculating CAGR values.

The alarm bells are ringing in Ethereum

In addition to this slowdown in Bitcoin's growth rate, Ethereum is also showing its worst performance in years. The ETH/BTC ratio, which represents Ethereum's value against Bitcoin, has dropped to its lowest level since 2020 at 0.022. Ethereum's four-year compound growth rate has entered the negative zone at -6%.

The main reason for this decline is that Ethereum has not shown a significant price movement since 2021 and its price is still below $2,000. This decline in the ETH/BTC ratio indicates that investors prefer Bitcoin as a safer haven over Ethereum.