As Risk Appetite Fades, ETH/BTC Pair Drops to Levels Not Seen in Half a Decade: Van Straten Reports

Ether Drops to 5-Year Low Against Bitcoin Amid Shifting Risk Appetite

Ethereum (ETH) has sharply lagged behind Bitcoin (BTC) in 2025, pushing the ETH/BTC ratio down to 0.02191 — a level not seen since May 2020, when both assets traded at a fraction of today’s prices.

So far this year, Ether has lost 39% of its value relative to Bitcoin, marking a dramatic reversal of historical trends. Following previous Bitcoin halving events, ETH had typically outperformed. But in the wake of Bitcoin’s April 2024 halving, which reduced miner rewards to 3.125 BTC, that pattern has broken for the first time.

Why the change? Market sentiment has turned risk-averse. Rising geopolitical tensions, inflation worries, and persistent yield pressure have led investors to seek safer havens. In the crypto ecosystem, Bitcoin is increasingly viewed as a digital safe asset, while Ethereum — though still dominant in smart contracts — is considered more volatile.

The impact is visible across multiple metrics. According to Glassnode, this is among Ether’s weakest quarters against Bitcoin in recent memory. Only Q3 2019 compares, when the ETH/BTC ratio slumped 46%.

Interestingly, Solana’s SOL has outpaced ETH significantly. The SOLETH ratio has climbed 24% year-to-date, even as SOL itself is down 35%. That signals strong relative strength versus ETH among Layer-1 competitors.

While ETH continues to play a central role in DeFi and staking, its underperformance raises strategic questions for long-term investors. Will Ethereum bounce back once macro conditions stabilize, or has the tide shifted more permanently in Bitcoin’s favor?

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