Bitcoin News: Bitcoin’s Four-Year CAGR Hits Record Low, Ethereum-to-BTC Ratio Plunges to 2020 Levels

Key Takeaways:Bitcoin’s four-year compounded annual growth rate (CAGR) falls to a record low of 8%, down from previous cycle highs.Ethereum’s (ETH) underperformance worsens, with the ETH/BTC ratio dropping to 0.022, its lowest since 2020.Ethereum’s four-year CAGR turns negative at -6%, signaling relative weakness compared to Bitcoin.BTC’s long-term returns are slowing as the asset matures, with volatility and explosive gains diminishing over time.Bitcoin’s CAGR Drops to All-Time LowAccording to Glassnode data, Bitcoin’s four-year CAGR—a key metric tracking its compounded annual growth rate over a four-year halving cycle—has dropped to 8%, the lowest on record. This marks a significant decline from previous cycle highs, reflecting Bitcoin’s maturing market dynamics and reduced long-term volatility.In March 2021, Bitcoin was trading around $60,000, near the peak of the previous bull cycle. Fast forward to March 2025, and BTC’s current price of ~$80,000 could be marking a cycle bottom, further influencing the CAGR calculation.While Bitcoin’s returns have slowed, the asset remains the dominant crypto, with institutional adoption and ETF inflows contributing to its stability.Ethereum Continues to Lag, ETH/BTC Ratio Hits 2020 LevelsEthereum’s underperformance relative to Bitcoin has worsened, with the ETH/BTC ratio plunging to 0.022, the lowest level in over four years.ETH’s four-year CAGR has turned negative at -6%, highlighting its struggles against BTC’s dominance.Ethereum’s price has remained stagnant since February 2021, now trading below $2,000.Market sentiment has shifted toward Bitcoin ETFs, while Ethereum awaits clarity on institutional adoption and staking ETF approvals.The Ethereum-to-Bitcoin ratio typically reflects market confidence in altcoins versus Bitcoin, and its sharp decline signals a lack of bullish momentum for ETH compared to BTC. Market Outlook: BTC’s Stability vs. ETH’s UncertaintyBitcoin’s slowing growth rate aligns with its maturation as an asset class, moving toward a store-of-value narrative rather than an early-stage high-growth investment.Ethereum’s performance will depend on DeFi adoption, layer-2 scalability, and potential ETF approvals—factors that currently lag behind Bitcoin’s institutional narrative.ETH/BTC’s decline could signal further downside for Ethereum unless significant catalysts emerge, such as Ethereum ETF approval or major DeFi innovations.While Bitcoin remains the dominant force in the crypto market, Ethereum’s future trajectory depends on renewed investor confidence and increased adoption in the DeFi and institutional sectors, according to CoinDesk.