Bitcoin's four-year compound annual growth rate has fallen to a record low of 8%
The Ethereum to Bitcoin ratio fell to its lowest since 2020 as the four-year CAGR turned negative.
James Van Straten, AI Boost | Edited by Parikshit Mishra Updated March 12, 2025 9:38 UTC Published March 12, 2025 9:37 UTC
Key points:
- The Ethereum to Bitcoin (ETH/BTC) ratio fell to 0.022, the lowest since 2020. The four-year CAGR turned negative at -6%,
- Bitcoin's four-year CAGR remains positive at 8%, but has bottomed out.
Bitcoin's (BTC) four-year compound annual growth rate (CAGR) has fallen to its lowest ever recorded value of 8%, according to Glassnode data.
This four-year period was chosen to coincide with the Bitcoin (BTC) halving cycle and to capture the typical bull/bear market cycle that typically follows a similar time frame.
In March 2021, four years ago, Bitcoin was trading around $60,000, close to the peak of the previous market cycle. The CAGR is expected to decline as Bitcoin's volatility and returns decrease over time as it matures.
However, this metric is highly dependent on the checkpoints. In 2021, Bitcoin peaked early in the cycle, while $80,000 in March 2025 could have been the cycle bottom.
The Ether (ETH) to Bitcoin (ETH/BTC) ratio has also entered negative CAGR territory at 6%, indicating the underperformance of the Ether token compared to Bitcoin. This drop is primarily due to the fact that the price of Ether has remained virtually unchanged since February 2021, currently below $2,000.
The ETH/BTC ratio is currently at 0.024, which is the lowest since late 2020.
Disclaimer : Some parts of this article were generated by AI tools and reviewed by our editorial team to ensure accuracy and adhere to our standards. For more information, see CoinDesk's full AI policy.
