Bitcoin’s 4-Year Growth Rate Falls to Record Low as ETH/BTC Ratio Hits 2020 Levels
Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has plummeted to an all-time low of 8%, signaling a slowdown in long-term returns, according to Glassnode data.
This four-year window aligns with Bitcoin’s halving cycle, offering insight into its cyclical performance. Back in March 2021, BTC was trading near $60,000, close to the previous cycle’s peak. As the asset matures, its returns are gradually stabilizing, leading to a natural decline in CAGR.
However, context matters. Bitcoin’s price in 2021 was at a market top, whereas the current $80,000 level could be a cycle low, skewing the growth rate metric.
Ethereum (ETH) has fared even worse against Bitcoin, with the ETH/BTC ratio now registering a negative CAGR of -6%. This is due to Ethereum’s price stagnation over the past four years, currently sitting below $2,000.
At 0.024, the ETH/BTC ratio is now at its weakest level since late 2020, underscoring Bitcoin’s dominance as investors continue to favor BTC over ETH.
