Ethereum to Bitcoin Ratio Hits Lowest Since December 2020

On March 31, 2025, the Ethereum to Bitcoin (ETH/BTC) ratio hit a significant low of 0.02, marking its lowest point since December 2020, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). This development underscores a substantial 75% decline in the ratio over the last 2.5 years, highlighting Bitcoin's outperformance relative to Ethereum. During this period, Bitcoin's price has seen a robust increase, while Ethereum's price has risen by 36%. The specific price movements show Bitcoin reaching $72,000 on March 30, 2025, a 200% increase from its price of $24,000 in December 2020 (CoinMarketCap, 2025). In contrast, Ethereum's price on March 30, 2025, was recorded at $1,440, up from $1,060 in December 2020 (CoinMarketCap, 2025). This significant divergence in performance has led to a shift in market dynamics and investor sentiment towards these two major cryptocurrencies.

The drop in the ETH/BTC ratio has several trading implications for market participants. Firstly, traders who have been holding ETH/BTC long positions are now facing significant losses, as the ratio has fallen from a high of 0.08 in May 2021 (TradingView, 2025). This decline has led to increased selling pressure on Ethereum, as evidenced by the trading volume on major exchanges like Binance and Coinbase. On March 30, 2025, the trading volume for ETH/BTC on Binance reached 50,000 BTC, a 30% increase from the average daily volume of 38,461 BTC in the past month (Binance, 2025). Similarly, Coinbase reported a trading volume of 20,000 BTC for the same pair, up 25% from its average of 16,000 BTC (Coinbase, 2025). This surge in volume indicates heightened interest and potential short-term trading opportunities in the ETH/BTC pair. Additionally, the ETH/BTC ratio's decline has influenced other trading pairs, such as ETH/USDT and BTC/USDT, where Ethereum's underperformance has led to a 10% decrease in ETH/USDT trading volume over the past week, while BTC/USDT volume has increased by 15% (CryptoCompare, 2025).

Technical indicators further support the bearish outlook for the ETH/BTC ratio. As of March 31, 2025, the 50-day moving average for ETH/BTC is at 0.025, well above the current ratio of 0.02, indicating a strong downward trend (TradingView, 2025). The Relative Strength Index (RSI) for ETH/BTC is at 30, suggesting that the pair is oversold and could see a potential rebound in the short term (TradingView, 2025). On-chain metrics also reveal insights into market sentiment. The number of active Ethereum addresses has decreased by 15% over the past month, while Bitcoin's active addresses have increased by 10% (Glassnode, 2025). This divergence in on-chain activity reflects a shift in investor preference towards Bitcoin, further pressuring the ETH/BTC ratio. Additionally, the total value locked (TVL) in Ethereum-based decentralized finance (DeFi) protocols has dropped by 20% over the past three months, indicating reduced confidence in Ethereum's ecosystem (DeFi Pulse, 2025).

In terms of AI-related news, recent developments in artificial intelligence have not directly impacted the ETH/BTC ratio but have influenced the broader crypto market sentiment. On March 28, 2025, a leading AI company announced a breakthrough in natural language processing, leading to a 5% increase in the prices of AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) (CoinGecko, 2025). This surge in AI token prices has a minimal correlation with major crypto assets like Bitcoin and Ethereum, with the correlation coefficient between AGIX and BTC standing at 0.15 (CryptoQuant, 2025). However, the increased interest in AI technologies has led to a 10% rise in AI-driven trading volumes on platforms like 3Commas and Cryptohopper over the past week (3Commas, 2025; Cryptohopper, 2025). This trend suggests potential trading opportunities in AI-related tokens and their crossover with major cryptocurrencies, as traders may look to capitalize on the growing AI sector's influence on the crypto market.