The cryptocurrency market is a dynamic beast, constantly shifting and surprising even seasoned investors. Recently, a key metric has flashed a warning sign for Ethereum enthusiasts: the ETH/BTC ratio has plummeted to its lowest level in four years. For those watching closely, this dramatic downturn in the ETH/BTC ratio raises critical questions about Ethereum’s current standing against Bitcoin and the broader altcoin market. Let’s dive into what’s happening and what it could mean for your crypto portfolio. What is the ETH/BTC Ratio and Why Does it Matter? Simply put, the ETH/BTC ratio represents the price of one Ethereum (ETH) in relation to Bitcoin (BTC). It’s calculated by dividing the price of ETH by the price of BTC. This ratio is a vital indicator in the crypto space because it reflects the relative strength of Ethereum compared to the market leader, Bitcoin. A rising ETH/BTC ratio suggests Ethereum is outperforming Bitcoin, indicating potentially stronger bullish sentiment towards ETH and altcoins in general. Conversely, a falling ratio, like what we’re witnessing now, suggests Bitcoin is gaining dominance, often signaling risk-off sentiment or a ‘flight to safety’ within the crypto market. Think of it this way: High ETH/BTC Ratio: Altcoin season vibes! Investors are more willing to take risks and diversify into Ethereum and other altcoins, expecting higher growth potential. Low ETH/BTC Ratio: Bitcoin season (or Bitcoin dominance)! Investors are becoming more risk-averse, preferring the perceived stability and established track record of Bitcoin. This can also indicate broader market uncertainty. Monitoring the ETH/BTC ratio is crucial for: Portfolio Diversification: Understanding the ratio helps investors decide on their allocation between Bitcoin and Ethereum, and by extension, altcoins. Market Sentiment Analysis: It provides insights into the prevailing risk appetite within the crypto market. Trading Strategies: Traders use the ratio to identify potential trading opportunities, such as switching between BTC and ETH based on ratio movements. The Alarming Drop: ETH/BTC Ratio Hits a Four-Year Low Recent data from BitcoinWorld monitoring confirms a concerning trend for Ethereum proponents. The ETH/BTC ratio has sunk to levels not seen since April 2021 across major centralized exchanges. As of April 4th, on Binance, the ratio stood at a mere 0.0248. This figure represents a 2.47% decrease in a single day and a staggering 33% decline since the beginning of this year alone! To put this into perspective, let’s look at the historical context: As the chart (illustrative) suggests, the current ETH/BTC ratio is significantly lower than its peak during the 2021 bull run. This sharp downward trend is not just a minor fluctuation; it’s a substantial shift indicating a significant underperformance of Ethereum relative to Bitcoin. Why is Ethereum Underperforming Bitcoin? Unpacking the Reasons Several factors could be contributing to this dramatic drop in the ETH/BTC ratio . Understanding these reasons is key to navigating the current market conditions: Bitcoin’s Resurgence and ‘Flight to Safety’: Bitcoin has been demonstrating renewed strength in recent months. In times of market uncertainty or broader economic concerns, investors often flock back to Bitcoin, perceived as the original and most established cryptocurrency. This ‘flight to safety’ phenomenon naturally boosts Bitcoin’s dominance and pushes the ETH/BTC ratio down. Ethereum’s Network Congestion and High Gas Fees: While Ethereum remains the leading platform for decentralized applications (dApps) and NFTs, it still grapples with network congestion and high gas fees, especially during periods of high activity. These issues can deter users and developers, potentially impacting Ethereum’s perceived value proposition compared to Bitcoin. Anticipation of Bitcoin Halving: The upcoming Bitcoin halving event, historically associated with bullish price movements for Bitcoin, could be drawing investor attention and capital towards BTC. Investors might be positioning themselves for potential Bitcoin gains, temporarily overlooking Ethereum and altcoins. Macroeconomic Factors: Broader macroeconomic factors, such as interest rate hikes and inflation concerns, can influence investor sentiment towards riskier assets like cryptocurrencies. In such environments, Bitcoin, again perceived as less risky than altcoins, might be favored, further压迫 the ETH/BTC ratio. Lack of Major Ethereum Catalysts: While Ethereum’s roadmap includes exciting developments like further upgrades and scalability solutions, there might be a perceived lack of immediate, impactful catalysts to drive significant price appreciation in the short term compared to Bitcoin’s narrative around halving and institutional adoption. Impact on the Crypto Market and Your Portfolio The declining ETH/BTC ratio has ripple effects throughout the crypto market: Altcoin Season on Hold: A low ETH/BTC ratio often signals a pause or even reversal of ‘altcoin season’. If Ethereum is struggling to outperform Bitcoin, it becomes less likely that smaller altcoins will experience significant rallies. Bitcoin Dominance Strengthens: As capital flows into Bitcoin, its market dominance increases. This can lead to Bitcoin outperforming most altcoins, at least in the short to medium term. Portfolio Rebalancing Considerations: Investors holding a significant portion of Ethereum or altcoins might need to re-evaluate their portfolio allocation. Should you reduce your ETH/altcoin holdings and increase your BTC exposure? This depends on your risk tolerance and investment strategy, but the current ETH/BTC ratio trend warrants careful consideration. Here’s a table summarizing the potential implications: Scenario ETH/BTC Ratio Trend Potential Market Impact Portfolio Strategy Consideration Current Situation Downward (Four-Year Low) Bitcoin Dominance; Altcoin Underperformance Review ETH/Altcoin allocation; Consider increasing BTC exposure Potential Reversal Upward Trend Altcoin Season Potential; Increased Risk Appetite Explore Altcoin opportunities; Maintain diversified portfolio Actionable Insights: Navigating the Current Market So, what should crypto investors do in light of this shocking ETH/BTC ratio decline? Here are some actionable insights: Stay Informed: Continuously monitor the ETH/BTC ratio and broader market trends. Use reliable sources like BitcoinWorld and other reputable crypto news platforms. Reassess Risk Tolerance: The current market signals increased risk aversion. Ensure your portfolio aligns with your risk tolerance. If you’re risk-averse, consider increasing your BTC holdings. Diversify Wisely: While Bitcoin dominance is rising, diversification remains crucial in the crypto market. Don’t abandon Ethereum and altcoins entirely, but strategically allocate based on your research and risk assessment. Long-Term Perspective: Remember that the crypto market is cyclical. Short-term ETH/BTC ratio fluctuations don’t necessarily invalidate the long-term potential of Ethereum and its ecosystem. Focus on projects with strong fundamentals and long-term growth prospects. Consider Dollar-Cost Averaging (DCA): In volatile market conditions, DCA can be a prudent strategy. Instead of trying to time the market bottom, consider gradually accumulating your preferred cryptocurrencies over time. Conclusion: A Critical Juncture for Ethereum? The significant drop in the ETH/BTC ratio to a four-year low is a stark reminder of the dynamic and often unpredictable nature of the cryptocurrency market. While it signals current underperformance for Ethereum relative to Bitcoin, it’s crucial to remember that this is just one metric in a complex ecosystem. The crypto landscape is constantly evolving, and both Bitcoin and Ethereum have crucial roles to play in its future. For investors, staying informed, adapting strategies, and maintaining a long-term perspective are paramount to navigating these shifts and capitalizing on future opportunities. The plummeting ETH/BTC ratio serves as a valuable signal, urging us to pay close attention and make informed decisions in this exciting yet volatile market. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum price action.
After almost a month of market dip, there seems to be a ray of hope, as many altcoins are gradually regaining bullish momentum. A good example is PEPE, which is gradually returning to the limelight. PEPE coin news claims that the token has experienced a 15% growth. Meanwhile, a major US-focused crypto reserve news has rattled the industry, sending shockwaves through the market. In all of these, the biggest game-changer is Panshibi , a new meme coin with 100x potential, now live in its ICO phase. With PEPE looking optimistic and Panshibi's presale going great, investors are hungry for the next big move. Before you invest, let’s take a look at how these two meme coins compare. PEPE Coin News: 15 Percent Gains as Meme Coin Mania Returns PEPE Coin seems to be bouncing back after facing a huge bearish momentum. Price is on a tear, soaring 5.5% in the past 24 hours. Analysts believe that PEPE will enjoy an extra 2x surge in the next few months. Several key narratives are driving PEPE’s price action . In addition, whale activity has picked up, with large holders acquiring more tokens; this goes to show that many investors believe in the token's ability to go up. Market sentiment has also shifted from utility tokens to meme coins, drawing in speculative traders. This means, even if the price of BTC continues to fall, meme coins can still perform well as their value isn’t tied to the general market, rather it is tied to community engagement. Increased liquidity on major exchanges like Binance has further boosted PEPE’s price. Despite this pump, PEPE still faces stiff competition from new meme coins with higher growth potential. PEPE coin news predicts 2x to 3x profits within the next few months; Panshibi promises up to 100x. US Crypto Reserve Sends Shockwaves: Will PEPE Be Affected If you have been following the crypto market for more than a year, you will agree that the outcome of US financial news plays a significant role in the outcome of the crypto market. With US crypto reserves, the entire market will certainly be affected. This development is aimed at regulating stablecoins and meme coin speculation, which could have a long-term impact on coins like PEPE. As it stands, crypto experts are still trying to process the effects of this policy on the general market, but one thing is certain: PEPE will be faced with volatility. So far, the news has not affected PEPE’s growth, but investors are watching closely. Panshibi 100x ICO: The Next PEPE Killer PEPE stands a good chance for growth within the next few months, but Panshibi has the potential for meteoric price growth for two reasons. First, it is still in its ICO, which means investors still have a good chance to make huge profits., Second, Panshibi offers real-life utility. Unlike PEPE, Panshibi integrates AI-powered tools and DeFi Staking options, providing extra utility. Since the ICO is still in its 4th stage with its price at $0.005, this is a perfect time to buy. PEPE or Panshibi: Which Is the Better Bet? The price of PEPE is up 5.5%, thanks to the activities of whales. The price is projected to rise further within the next few months. This means if you buy now, you stand a good chance of getting 2x of your investment. However, if you want more gains, then Panshibi should be at the top of your list as it offers investors up to 100x profits. PEPE is still a great option for anyone seeking rapid, short-term returns. But if you’re looking for life-changing returns, Panshibi’s ICO is the perfect option. With PEPE’s rally in full swing and Panshibi’s presale picking up steam, meme coin season is back. Make sure you take advantage of this opportunity. You can participate in the Panshibi presale here: Telegram: https://t.me/panshibi Twitter: https://x.com/panshibi_ Website: https://panshibi.com Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
Salinas revealed details of how much bitcoin exposure he has in his personal portfolio in an interview with Bloomberg and described the cryptocurrency as “the hardest asset in the world.” Ricardo Salinas Doubles Down on Bitcoin, Holds 70% of His Portfolio in BTC Mexico’s third richest man, Ricardo Salinas, chairman and CEO of corporate conglomerate
The crypto market's volatility continues to surprise traders with sudden price shifts. Traders can achieve significant profits but should be cautious of high leverage risks. Continue Reading: Investors Reap Massive Gains in the Volatile Crypto Market! The post Investors Reap Massive Gains in the Volatile Crypto Market! appeared first on COINTURK NEWS .
Summary Solana, alongside Bitcoin and other top cryptocurrencies, has been included in President Trump’s Strategic Crypto Reserve, boosting its investment appeal. Solana's scalability and speed, driven by its Proof-Of-History protocol, have helped it gain market share from Ethereum in the DeFi and NFT space. Despite its potential, Solana faces risks from market sell-offs, liquidity issues, and its own network centralization and instability. While market conditions are risky, Solana offers significant upside potential, possibly reaching $500 in this crypto cycle if it can maintain its momentum. Thesis Summary Solana (SOL-USD), together with Bitcoin (BTC-USD) and other major cryptocurrencies have made the cut for President Trump’s Strategic Crypto Reserve. The rally that took hold yesterday following the announcement soon dissipated as Trump also announced more tariffs and markets sold off. Is this a chance to buy Solana? Regardless of the crypto reserve news, Solana has been one of the best-performing altcoins in 2024, and with good reason. Capitalizing on Ethereum’s (ETH-USD) struggles, Solana has gained traction in the Decentralized App ecosystem. However, this crypto could fall hard if liquidity dries up and speculative assets, like Altcoins, a lot of which are traded on Solana, begin to lose their appeal. Solana Makes The Cut While investors were already warming up to the idea of a crypto reserve and the idea that the US government under Trump would buy Bitcoin, not as many were expecting other altcoins to also make the cut. Crypto Ranking (Coinmarketcap) Essentially, the top 5 cryptocurrencies by market cap, excluding Binance (BNB-USD) have been selected to be part of the Strategic Crypto Reserve. Each of these coins is attractive in its own way. Bitcoin is seen by many as digital gold. Ripple (XRP-ÚSD), which I covered yesterday, is already being adopted by numerous financial institutions. Cardano (ADA-USD) has always been a very well-thought-out and interesting project for an L2. However, when it comes to L2s, Ethereum is the King, though Solana, with good reason, has been catching up to Ethereum. Out of all the coins above, Solana might present the highest return potential, especially if it can take Etehreum’s place. Solana; The Good And The Bad Solana has been able to take market share from Ethereum thanks to its scalability and speed. Solana’s Proof-Of-History protocol allows the blockchain to carry out 65,000 transactions per second. Speed has always been an issue for Ethereum, and though it has implemented solutions like sharding to address this, Solana was built from the beginning to be fast and efficient. For example, Solana’s architecture also allows for parallel transactions when executing smart contracts. This is why Solana has gained popularity in the DeFi and NFT space. However, this increased efficiency comes with switch downsides. Solana is more centralized than Ethereum, with high hardware requirements making it difficult to become a validator. This also explains why Solana’s network is sometimes unstable. The blockchain has suffered numerous outages and security breaches. Another important thing to take into account is that Solana’s tokens are inflationary, with supply increasing every year, although inflation will come down every year. Technical Analysis And Outlook Soalan has grown at a rapid pace and, in fact, boasts more daily active users than Ethereum. Active Daily Users Solana (X) If there’s a chance that a coin can de-throne Ethereum it’s Solana. Though there are other fast L2s out there, few of them have gained the same traction as Solana. This gives SOL economies of scale and a network effect. Furthermore, Solana's unified environment is a lot developer-friendly and allows for more seamless interoperability between chains. Even if there are marginally faster blockchains out there, that would not be enough to prompt a migration away from SOL at this point. Solana TA (Trendspider) In my opinion, Solana could reach close to $500 in this crypto cycle. My target is based on the 1.618 ext of the bear market. If we measure from the SOL top in 2021 to the bottom in 2022 and project the key Fibonacci levels, the golden ratio, 1.618, projects us to $412 and the 2 ext gets us all the way up to $500. This is my target range. Furthermore, based on the Bitcoin 4-year cycle, we should still see more upside in 2025 for crypto, making this a buyable dip. With that said, the current retracement could see us form a lower low in wave 4 before that happens if we break the recent low. Below the week 200 EMA offers support at $94. Risks With that said, Solana and other altcoins could be big losers if the market continues to sell off. As I’ve mentioned in my last Bitcoin article , liquidity is faltering, and unless the Fed does something the market could continue to sell off. This will be especially bad for Bitcoin and speculative assets like Altcoins. This is a double whammy for Solana since it itself is a speculative asset and it is also the blockchain that hosts a lot of speculative DeFi projects and tokens that could get crushed in a bear market. On top of that, we have to also take into account that Trump cannot unilaterally create a crypto reserve, and he will need the approval of Congress to really start buying up Bitocin and the above-named altcoins. Final Thoughts All in all, I do see some risk right now in the market, but times of fear are often the best times to buy. As far as altcoins go, Solana offers perhaps the best upside potential at this stage.
Beyond an avenue for making speculative bets, prediction markets can offer an additional glimpse into the prevailing sentiment surrounding a particular matter. You wouldn’t have to look particularly far to see that worries surrounding a potential recession in the United States have skyrocketed as of late. President Trump’s sudden imposition of previously-announced tariffs on China, Mexico, and Canada on March 3 caused a crash in the cryptocurrency market , as well as a general selloff of risk assets. Prediction markets reacted accordingly. On March 4, two of the most popular platforms — Kalshi and Polymarket, marked a noted uptick in users who answered affirmatively to the query of whether or not a recession will occur this year. Prediction markets show increased odds of a recession Over the course of March 4, international prediction betting market platform Polymarket saw the odds of a recession in 2025 happening increase from 27% to 44% — although by press time, the odds had retreated to 39%. Odds of a recession, daily chart. Source: Polymarket A similar increase was also seen on domestic platform Kalshi — where the odds of a recession increased from 33% to 43% over the course of the day. Odds of a recession, daily chart. Source: Kalshi There is an important distinction to be made here. Prediction markets are not representative of the wider population. To boot, the very odds offered by these platforms are made with profit in mind — rather than presenting an actual look at the likelihood of a certain outcome. In addition, deploying capital on a large scale can tilt the odds — as seen with the sudden decreases and increases in odds these platforms saw when it came to the United States presidential election, only for it to turn out that millions of dollars were put up by a small number of accounts. With all of that mind, however, these recent swings are almost certainly organic, and showcase a growing sentiment that the Trump administration’s policies could lead to a contraction of the economy or a marked slowdown and resurgent inflation by the end of the year. Featured image via Shutterstock The post U.S. recession odds skyrocket for 2025 appeared first on Finbold .
The White House is signaling a likely approval from President Donald Trump if a congressional resolution hits his desk that would rescind a crypto Internal Revenue Service rule approved just before he returned to office. Trump's senior advisers will recommend he sign the Congressional Review Act resolution into law, according to a Tuesday statement posted by David Sacks, the president's crypto czar, saying that the "midnight regulation in the final days of the previous administration" is an unnecessary burden on decentralized finance (DeFi) in the U.S. The rule "inappropriately requires certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including data about the taxpayers involved," according to the statement, which emerged as the U.S. Senate began considering the resolution that could delete the IRS' work under the authority of the CRA. In the opening moments of what could be a longer floor debate on Tuesday, a number of Democrats voted yes on a motion to proceed with Republican Senator Ted Cruz's resolution, showing some split in the party over opening the discussion on it. The initial motion to proceed with Senate action drew what's known as a super majority of senators, 70-28, meaning more than two thirds of the chamber voted yes to move ahead. "In a bipartisan, super majority vote, the Senate voted to move forward to discuss and debate the CRA resolution," noted Jennifer Rosenthal, a spokesperson for the DeFi Education Fund. "This is a tremendous step forward, and now we move to the debate before the full Senate vote." In order for the CRA resolution to reach Trump, it has to pass both the Senate and the House of Representatives, where the matter had previously advanced through a committee vote. Read More: U.S. Senate Expected to Vote on Erasing IRS's Crypto Broker Rule That Threatens DeFi: Source The CRA allows Congress to get rid of the rules of federal regulators approved in a very recent time window, making a tight deadline for the lawmakers to oppose the work of the previous administration. Senator Cynthia Lummis, an industry supporter who heads a digital assets subcommittee, argued in a post on social-media site X that "these heavy-handed federal rules threaten to drive American crypto entrepreneurs overseas at a time when we should be cultivating this industry at home." The vote continues what promises to be a big week for crypto in Washington, with Trump's weekend expressions of support for a crypto reserve, to an end-of-week meeting with crypto leaders and regulators at the White House. The Commodity Futures Trading Commission is also planning a crypto CEO forum.
SafeMoon’s migration to Solana is generating excitement in the crypto community, with a remarkable increase in its token value as developers actively burn tokens. With the intention of rebuilding trust,
Peter Schiff accuses Trump of crypto market manipulation, demanding a congressional investigation into potential insider trading.
Bitcoin’s recent price movements have reflected a mix of optimism and uncertainty for investors. Earlier this week, Bitcoin surged to $94,000 following news of the U.S. crypto strategic reserve, which is set to include BTC, ETH, SOL, ADA, and other major digital assets. However, the asset has since reversed its upward momentum, falling by 10% and bringing its price below $84,000 as of today. This decline has sparked discussions among analysts about the factors influencing Bitcoin’s short-term performance. CryptoQuant analyst Banker has highlighted a significant shift in investor sentiment and market behavior, particularly focusing on open interest changes in derivatives trading and the Crypto Fear & Greed Index. These indicators may provide insight into potential market trends in the coming weeks. Related Reading: Bitcoin Repeats Historic Pattern—Is a Breakout Toward $100K Next? Open Interest Decline and Shifting Market Sentiment One key metric being analyzed is the Open Interest Change (7D), which tracks the total outstanding derivatives contracts. According to Banker, this metric dropped by 14.42% on March 1, signaling a reduction in speculative activity. Such a decline often suggests that traders are unwinding their positions, potentially leading to a market reset. Historically, similar declines have been followed by price stabilization or recovery as speculative excesses are removed from the market. Additionally, the Crypto Fear & Greed Index, a widely used sentiment indicator, has dropped sharply since February 4. The index fell from 72 (extreme greed) to 26 (fear), indicating a shift in market sentiment. A reading above 70 typically suggests an overbought market, while a lower reading signals growing investor caution. This shift may reflect broader uncertainty in the crypto market, possibly influenced by external factors such as regulatory discussions and macroeconomic developments. Banker noted: The recent decline suggests a cooling-off period, which could pave the way for a healthier market environment. However, the sharp drop in sentiment also reflects heightened caution among investors, likely driven by recent market turbulence and fundamental developments, such as news surrounding the U.S. government’s crypto reserves. Bitcoin Market Outlook and Upcoming Events According to Banker, upcoming events could influence Bitcoin’s price trajectory. The analyst mentioned that the Crypto Summit at the White House on March 7 is expected to discuss cryptocurrency regulation and market policies. Related Reading: Bitcoin’s ‘KISS Of Death’? Arthur Hayes Warns Of Recession Before Surge Banker suggest that announcements from the event could lead to short-term volatility, particularly for Bitcoin, Ethereum, and other major assets like ADA, XRP, and SOL. Depending on the regulatory stance taken, the market may react with further price swings or a potential rebound. The CryptoQuant analyst wrote: Depending on the outcomes and announcements, there may be a small window of upside potential. For now, investors should remain cautious but vigilant, as the current dip in open interest and sentiment could offer strategic entry points for those with a longer-term perspective. Featured image created with DALL-E, Chart from TradingView