🚀 ETH/BTC Hits a Three-Year Low
posted 24 Oct 2024
On October 23, ETH (Ethereum’s native token) dropped to a three-year low against Bitcoin at 0.037558, a level not seen since April 2021.
ETH/BTC Price Chart. Source: whitebit.com
Ethereum’s steep drop seems to be related to Bitcoin’s correction. On October 23, BTC fell just 3% (and has almost fully recovered), while ETH tumbled 6.7%, reaching a weekly low of $2,451.
Ethereum Price Overview. Source: tradingview.com
The second-largest cryptocurrency may be struggling due to declining investor interest and growing disappointment in ETH, prompting investors to favor BTC. For example, yesterday, spot Bitcoin ETFs recorded inflows of $192.31 million, while Ethereum ETFs only attracted $1.27 million.
Interestingly, since U.S. spot Ethereum ETFs began trading, capital outflows have exceeded inflows.
Another contributing factor to ETH's drop is the excessive centralization due to coin accumulation by stakers. As of October 2024, over 24% of Ethereum’s circulating supply is locked in staking.
Betting on ETH/BTC. Source: polymarket.com
The cryptocurrency betting platform Polymarket has even launched a wager on the ETH/BTC rate. The probability of the rate exceeding 0.04 by Halloween is now at 22%, a sharp decline from 63% just a week ago.
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