Ethereum’s Price in Bitcoin Hits Multi-Year Low: Why the Gap Could Widen

Ethereum’s Price in Bitcoin Hits Multi-Year Low, Investors Lose Faith

In a recent development in the world of cryptocurrency, Ethereum’s price in Bitcoin hit a multi-year low in April, sparking concerns among investors. The widening gap between Ethereum and Bitcoin has raised questions about the future of the world’s biggest altcoin.

Investors are losing faith in Ethereum as the cryptocurrency struggles to keep up with Bitcoin’s impressive gains. The odds of a US spot Ethereum exchange-traded fund getting approved in May have dropped significantly, leading to a decrease in optimism surrounding the digital asset.

According to CoinShares data, Ethereum exchange-traded products suffered $34 million worth of outflows in the past week, making them the only asset group to register a net outflow since the beginning of the year. Luke Nolan, a research associate at CoinShares, noted that ETH sentiment is at its lowest point in years, despite recent developments like the BUIDL fund by BlackRock.

The decreasing optimism towards Ethereum comes as smaller altcoins, such as Solana, gain traction among investors who are seeking higher returns than what Ethereum has been able to offer.

Bitcoin continues to dominate the market, outperforming other cryptocurrencies at the beginning of the cycle. The recent focus on Bitcoin has been fueled by significant inflows to US Bitcoin ETFs, which have seen over $12 billion in inflows since their launch in January.

Meanwhile, Ethereum has failed to capitalize on the rally, with its price in Bitcoin falling to a multi-year low in April. The widening gap between Ethereum and Bitcoin has raised concerns among traders, with many closely monitoring the ETHBTC trading pair to gauge the relative strength of Ethereum against Bitcoin.

Despite hopes for a turnaround, the approval of a spot Ethereum ETF in the US looks unlikely, with analysts predicting low odds of approval in May. As a result, investors are turning to alternative cryptocurrencies like Solana, which offer more room for growth compared to Ethereum.

While there is still hope for Ethereum to regain its footing against Bitcoin in the future, traders will continue to watch the market closely for any signs of a turnaround. In the meantime, the cryptocurrency market remains volatile, with investors navigating the shifting landscape of digital assets.

Tim Craig, DL News’ DeFi Correspondent based in Edinburgh, is closely monitoring the situation. For tips and insights, reach out to tim@dlnews.com.