Bitcoin’s CAGR Falls to Record Low, Ethereum’s Ratio Weakens
Bitcoin’s four-year CAGR has decreased to 8%, while Ethereum’s ratio compared to Bitcoin has also hit a low of 0.022. These figures reflect a maturing market with reduced volatility and returns for Bitcoin and underperformance for Ethereum. This analysis aligns with historical market cycles, indicating that we may be at varying points in future price movements.
Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has recently declined to a historical low of 8%, as reported by Glassnode. This four-year timeframe aligns with Bitcoin’s halving cycle, which typically mirrors the periodic bull and bear market cycles. By March 2021, Bitcoin was valued around $60,000, close to the peak of the preceding cycle, highlighting how the asset’s volatility is diminishing as it matures.
In conclusion, Bitcoin’s four-year CAGR has dropped to an all-time low of 8%, reflecting an overall decline in market volatility and returns as it matures. Additionally, the ETH/BTC ratio has reached its lowest point since late 2020, illustrating Ethereum’s underperformance relative to Bitcoin. These trends underscore the evolving dynamics of the cryptocurrency market and suggest that the future trajectory may continue to diverge from past performance.
Original Source: www.coindesk.com
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