BTC’s Four-Year Compounded Growth Rate Drops to Unprecedented 8%

Bitcoin’s Long-Term Growth Rate Hits Record Lows as ETH/BTC Ratio Sinks to 2020 Levels

Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has declined to just 8%, marking its lowest level on record, according to Glassnode data.

The four-year timeframe aligns with Bitcoin’s halving cycle, providing a benchmark for long-term performance. In March 2021, Bitcoin was trading near $60,000, close to the previous cycle peak. As Bitcoin matures, its volatility and annualized returns are naturally tapering off.

However, these figures are highly dependent on reference points. Bitcoin was in an overheated market phase in early 2021, whereas today’s $80,000 level may represent a cycle bottom rather than a peak.

Ethereum (ETH) has also struggled in comparison, with the ETH/BTC ratio now registering a negative CAGR of -6%. ETH has largely traded sideways for over four years, currently sitting below $2,000, contributing to its declining ratio against BTC.

At 0.024, the ETH/BTC ratio has now hit its lowest level since late 2020, reinforcing Bitcoin’s dominance over Ethereum in the current market cycle.

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