Ethereum

FOMO

Bitcoin

Daily

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The Bitcoin-to-<a href="https://u.today/surprising-ethereum-long-term-indicator-for-price-emerges-as-eth-dips">Ethereum</a> ratio, a key indicator of market sentiment and relative strength between the two leading cryptocurrencies, has flashed a warning signal that could have significant implications for the crypto market's direction.
A ratio that compares the price of Bitcoin, the largest digital asset, with Ethereum, the second-ranked, hints at a potential waning of risk appetite in alternative cryptocurrencies.
The Bitcoin-to-Ethereum ratio suggests which of the two cryptocurrencies is gaining or losing ground versus the other. A rising ratio shows that Bitcoin outperforms Ethereum, while a falling ratio suggests the opposite.
The BTC/ETH ratio reached 20.76 in today's trading session, its highest level since April 2021. This trend implies a stronger demand for Bitcoin, the oldest and most established cryptocurrency, than Ethereum.
According to <a href="https://twitter.com/crypto/status/1776154809558581286">Bloomberg</a>, citing QCP Capital analysts, this trend might be a very early warning of FOMO — fear of missing out — turning into "fear" if Ethereum is used as a proxy for sentiment toward smaller tokens or alternative cryptocurrencies.
A key factor contributing to Bitcoin's dominance might be the growing institutional interest in the cryptocurrency. Bitcoin hit a new high of $73,798 in mid-March, riding a wave of inflows into dedicated U.S. exchange-traded funds that debuted in January.
<img alt="TradingView" data-entity-type="file" data-entity-uuid="7443df5a-c63e-4a9d-8637-f951d0a9bacf" src="https://u.today/sites/default/files/inline-images/2024%2004%2005%200000.png"><a href="https://www.tradingview.com/x/2nFhXKaJ/">BTC/ETH Daily Chart, Courtesy: TradingView</a>
<a href="https://u.today/bitcoin-boom-institutions-channel-86-billion-into-crypto-market">Bitcoin</a> has retreated by around 9.33% from its ATH as ETF demand has cooled, and alternative cryptocurrencies have also declined. The ETF-led Bitcoin boom has slowed over the last three weeks, owing in part to economic indications pointing to higher-than-expected interest rates.
At the time of writing, BTC had dropped 0.37% in the previous 24 hours, reaching $66,563. Ethereum, the second largest cryptocurrency by market value, lost more than Bitcoin in the last 24 hours, falling 3.06% to $3247.
Most alternative cryptocurrencies, or altcoins, suffered even worse losses than Bitcoin and Ethereum.

Bitcoin vs. Ethereum: Ratio Rings Warning Bell for Crypto Market

U_Today

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