ETH/BTC Ratio Declines: Lack of Institutional Support

Ethereum-to-Bitcoin ratio declines sharply in April 2025, driven by insufficient institutional backing for Ethereum compared to Bitcoin’s consistent support.

The event signifies a shift in market dynamics, reflecting Ethereum’s lag in institutional adoption compared to Bitcoin, affecting market valuations significantly.

Bitcoin’s price exceeded $100,000, contrasting with Ethereum’s 50% yearly decline, as institutional buyers favor Bitcoin.

Eric Wall noted that a lack of consistent buyers for ETH is influencing the ETH/BTC ratio. Michael Saylor’s substantial Bitcoin acquisitions exemplify the kind of pivotal influence Ethereum lacks at present.

Eric Wall, co-founder of Taproot Wizards, emphasizes the absence of Saylor-like big buyers for ETH, impacting its performance. As Eric Wall stated, “The absence of a Saylor-like buyer for ETH is playing its role in the decline of the ETH/BTC ratio. Michael Saylor’s BTC purchases have contributed to the asset’s performance, but Ethereum does not have a consistent buyer.”

ETH/BTC ratio fell to 0.01787, the lowest since 2020. Major financial backers consistently support Bitcoin, unlike its competitor Ethereum.

The drop impacts Ethereum’s market position, with Bitcoin buoyed by its increasing dominance narrative as a “digital gold.” As Layer-2 solutions progress, Ethereum sees reduced on-chain activity, pressuring its relative valuation.

Financial impacts are stark, with Ethereum network fees at multi-year lows. Regulatory uncertainties affect institutional sentiment, impeding potential ETF approvals and institutional expansion into Ethereum.

Insights from market trends indicate Ethereum’s continued challenges as mainnet activity remains stationary despite growth in Layer-2 networks. Meanwhile, similar historical events saw ETH lag but eventually showing oversold recoveries.