Bitcoin Reaches New ATH of $98,310 as ETH/BTC Hits Multi-Year Low
Bitcoin (BTC) reached a new all-time high (ATH) of $98,310, while the ETH/BTC trading pair fell to multi-year lows, raising concerns about Ethereum's (ETH) performance as the second-largest digital asset.
Reasons for Ethereum’s Underperformance Against Bitcoin
Bitcoin's ATH brings it close to the $100,000 mark. Its sustained dominance has led to the underperformance of altcoins, especially Ethereum, throughout the year.
The weekly chart shows that the ETH/BTC trading pair has dropped to 0.0331, a level last seen in March 2021, reflecting a decline of over 60% since December 2021. The losses accelerated from July 2024, coinciding with Bitcoin's surge, driven by optimism regarding pro-crypto Republican candidate Donald Trump in the U.S. presidential election.
The success of Bitcoin exchange-traded funds (ETFs), which hold more than $100 billion in assets, has contributed to institutional preference for BTC over other cryptocurrencies. In contrast, US-based spot Ethereum ETFs have accumulated only $8.96 billion in total net assets.
Additional factors include Bitcoin's halving in April 2024, reducing miner rewards from 6.25 BTC to 3.125 BTC, reinforcing BTC’s supply scarcity narrative. Conversely, Ethereum's increasing issuance rate has raised questions about its status as "ultrasound money."
Outlook for Ethereum’s Recovery Relative to BTC
With the ETH/BTC trading pair at new lows, traders are interested in potential recovery timelines. Analysts on X have shared insights.
Crypto analyst @CryptoGemRnld identified two strong support zones: a trendline support and a demand box zone. Historically, the ETH/BTC pair has rebounded from these levels since 2017, often leading to altcoin seasons.
Trader Peter Brandt suggested that the ETH/BTC ratio may be nearing its bottom, predicting a potential reversal in December. Recent data indicates that ETH may be undervalued, supported by limited inflow to exchanges and minimal profit-taking among ETH holders.
Spot ETH ETFs recorded significant inflows, attracting over $515 million between November 9 and November 15. At press time, ETH trades at $3,333, up 7.4% in the past 24 hours.
