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Ethereum Hits 32-Month Low Against Bitcoin Amid Bitcoin ETF Anticipation

Bitcoin Dominance Surges as Ether Loses 43% in Value Against BTC Since September

In the midst of Bitcoin ETF fever, Ethereum (ETH) finds itself at its lowest point against Bitcoin (BTC) in 32 months, marking a significant downturn since April 2021. The crypto landscape is witnessing a shift as investors closely monitor the potential approval of Bitcoin ETFs in the United States.

Since September 7, ETH has experienced a notable 43% loss in value against BTC, dropping from 0.08566 BTC to 0.0482 BTC. While Ethereum has seen a 41% increase in U.S. dollar terms during the same period, it pales in comparison to Bitcoin’s impressive 81% gain. This discrepancy reflects the growing emphasis on Bitcoin ETFs and their potential impact on the cryptocurrency market.

As a clear indicator of the prevailing enthusiasm surrounding Bitcoin ETFs, Bitcoin dominance — the measure of Bitcoin’s share in the total cryptocurrency market capitalization — has surged from 39% to 54% over the past 14 months.

Bitcoin’s rising dominance over altcoins, including Ethereum, is fueled by two key narratives: the optimistic anticipation of a U.S.-approved spot Bitcoin ETF and the upcoming “halving” event, which involves a reduction in miner rewards for creating new BTC.

While Ethereum is earmarked for future exchange-traded products, Bitcoin is poised to experience a surge of “tens of billions of dollars worth” in fresh inflows if the U.S. Securities and Exchange Commission grants approval for a spot ETF this week.

Adding to Bitcoin’s potential momentum, a block reward halving is scheduled for April, historically coinciding with bullish markets as the supply of newly mined BTC diminishes. On the other hand, Ethereum has slipped from the spotlight since its much-anticipated transition to a proof-of-stake blockchain in 2022. Despite a 10% higher price, the total value locked across all Ethereum protocols is currently lower than it was in April of the previous year. As the crypto landscape evolves, all eyes remain on the transformative effects of Bitcoin ETFs and their implications for the broader market.

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