Bitcoin ETF Mania Pushes Ethereum to a 32-Month Low Against BTC

• Ethereum's Ether Slides to Lowest Value Against Bitcoin Since April 2021
• Ether Rises in Dollar Terms But Lags Behind Bitcoin
• The Emergence of Two Bitcoin Narratives
• Bitcoin's Upcoming Halving Event
• Ethereum Slips Out of Focus

Ethereum's Ether Slides to Lowest Value Against Bitcoin Since April 2021

Ether (ETH), the cryptocurrency of the Ethereum$2,315 -2.42% network, has experienced a significant drop in its value against bitcoin (BTC), reaching its lowest point since April 2021. The current focus of cryptocurrency investors on the anticipated approval of bitcoin Exchange-Traded Funds (ETFs) in the United States seems to be a contributing factor. Between September 7 and now, Ether's value has plummeted by 43% in relation to BTC, dropping from 0.08566 BTC to 0.0482 BTC.

Ether Rises in Dollar Terms But Lags Behind Bitcoin

Despite the dip against BTC, ETH has seen growth in its dollar value, increasing by 41% within the same period. However, this increment pales in comparison to Bitcoin$42,260 -0.64%'s 81% gain. Bitcoin's increasing dominance in the cryptocurrency market is another clear sign of the growing optimism surrounding Bitcoin ETFs and their potential impact on the market. Bitcoin's share of the total cryptocurrency market capitalization has surged from 39% to 54% over the past 14 months.

The Emergence of Two Bitcoin Narratives

Bitcoin's appreciating value against alternative cryptocurrencies like Ether can be traced back to two emerging narratives. Firstly, the expected approval of a spot Bitcoin ETF in the United States, and secondly, the forthcoming halving which refers to the reduction in the reward given to miners who create new BTC. The anticipated approval of the ETF could lead to fresh inflows said to be worth tens of billions of dollars.

Bitcoin's Upcoming Halving Event

Additionally, Bitcoin is set for a block reward halving event in April. This event, which has previously coincided with a series of bull markets, will reduce the supply of newly minted BTC.

Ethereum Slips Out of Focus

On the other hand, Ethereum has been gradually fading from the limelight following its much-publicized transition to a proof-of-stake blockchain in 2022. The total value locked across all Ethereum protocols is currently less than what it was in April of the previous year, even though its price is 10% higher.

Edited by Jonathan Stoker