Bitcoin’s (BTC) four-year compound annual growth rate (CAGR) has fallen to its lowest recorded figure of 8%, based on recent data.
This four-year duration has been selected to correspond with Bitcoin’s halving cycle, as well as to encapsulate the standard bull and bear market patterns that often unfold in similar timeframes.
Back in March 2021, four years ago, Bitcoin was trading around $60,000, close to the peak of the preceding market cycle. The reduction in CAGR is anticipated, as Bitcoin’s volatility and returns are likely to decrease as the asset matures.
Nonetheless, this metric heavily relies on the chosen reference points. In 2021, Bitcoin was hitting a blow-off top earlier in the cycle, whereas by March 2025, a price of $80,000 might signify a cycle bottom.
The ether (ETH)-to-bitcoin (ETH/BTC) ratio has also slipped into negative CAGR territory at 6%, indicating that Ethereum’s native token has not performed as well as Bitcoin. This drop can be attributed mainly to the ether price remaining relatively stable since February 2021, currently staying below $2,000.
At present, the ETH/BTC ratio sits at 0.024, reaching its lowest point since late 2020.
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