Give me the latest on this: Ethereum Hits Five-Year Low Against Bitcoin

As of today, March 31, 2025, Ethereum has indeed hit a five-year low against Bitcoin, with the ETH/BTC trading pair dropping to approximately 0.02193–0.0227, a level not seen since May 2020. This marks a significant underperformance of Ethereum relative to Bitcoin, with Ether declining roughly 39% against Bitcoin year-to-date. This development has been widely noted in recent news and discussions across crypto communities.

The decline comes amid broader market dynamics. Bitcoin itself has experienced a pullback, recently falling from highs near $88,000 to around $83,600–$83,800 as of late March, driven by macroeconomic concerns such as inflation fears and anticipated U.S. policy shifts under the Trump administration, including potential tariffs set for April. Ethereum, however, has been hit harder, dropping over 6% in the past few days to trade around $1,801–$1,875, erasing much of its post-election rally gains from November 2024.

Several factors are contributing to Ethereum’s relative weakness. Analysts point to a decline in network activity and fees on Ethereum’s base layer, as much of the transaction volume has shifted to layer-2 solutions like Base, which some estimate has reduced Ethereum’s market cap by as much as $50 billion. Competition from other layer-1 blockchains, such as Solana, which has seen rising decentralized exchange volumes, is also pressuring Ethereum’s dominance. Additionally, the Ethereum Foundation’s focus on scalability through layer-2s, while innovative, has led to short-term revenue sacrifices, further dampening investor sentiment.

Market sentiment reflects this shift. Bitcoin continues to be viewed as a safer, more stable asset during uncertain times, bolstered by institutional adoption and layer-2 solutions like the Lightning Network. Meanwhile, Ethereum’s upcoming Pectra upgrade, expected in the coming weeks, could potentially reverse some of this trend if it significantly improves usability and fees, though analysts remain cautious about its immediate impact.

In summary, Ethereum’s five-year low against Bitcoin as of March 31, 2025, underscores a broader market rotation favoring Bitcoin, driven by macroeconomic pressures, Ethereum’s structural challenges, and shifting investor preferences. Whether this marks a lasting trend or a temporary dip remains a point of debate among traders and analysts.