ETH/BTC Ratio Hits 5-Year Low of 0.022: Is an Altcoin Season on the Horizon?

The ETH/BTC ratio has reached its lowest level in almost five years, prompting vigorous analysis among market analysts. The market data demonstrates that Ethereum faces declining competition against Bitcoin, which makes some industry experts predict the entry of altcoins into the cryptocurrency space. Some market analysts view the present ETH/BTC rate as a sign that altcoin season is approaching, whereas others maintain conservative views on Bitcoin’s continued market dominance. Bitcoin holds over 62% market superiority, as investors wonder whether the market will see an altcoin rally or if Bitcoin will still dominate.

ETH/BTC Ratio at Historic Lows: A Buying Opportunity for Altcoins?

The ETH/BTC ratio currently stands at 0.02247, marking its lowest position since mid-2020. This market trend ratio helps traders identify when altcoins will launch a breakthrough and is widely used to predict upcoming altcoin market expansion.

Image 1- Published by Emmaculate on TradingView, March 13, 2025.

Alex Kruger, a crypto economist, believes the current market condition perfectly allows traders to relocate their Ethereum holdings into riskier altcoins. The market downturn causes equivalent loss levels for both assets, but during an upward market, altcoins demonstrate superior performance potential, according to Kruger. Considerations of this strategy stem from understanding the elevated price movements of altcoins compared to Bitcoin during upward trends.

The ETH / BTC ratio historically sets major altcoin price movements when it declines toward a low point and then moves upward. Investors entering smaller volatile digital currencies generally start with Ethereum due to its gateway role from Bitcoin investments. The current drop in the ETH/BTC ratio indicates a potential future rise in altcoin prices if this historical relationship maintains consistency.

Bitcoin Dominance Remains Strong, Challenging the Altcoin Narrative

The position of Bitcoin dominance exceeds 62.15%, indicating investors select Bitcoin as their initial choice instead of alternative assets. The current Altcoin Season Index on CoinMarketCap displays a score of 13 out of 100, indicating Bitcoin leads above altcoin investments. The recent Bitcoin price performance exceeds what other altcoins have achieved during the last 90 days, showing that a potential altcoin rally remains unlikely.

The cryptocurrency trader Hansolar declared Bitcoin would maintain dominance throughout every month of the year. The previous altcoin season spanned just 16 days during the year 2024. At the precise moment, Bitcoin’s market dominance shifted from 61% to 55% in November, settling at 59%.

The recovery of Ethereum’s market leadership relative to Bitcoin requires substantial core development, better user adoption, and institutional capital entry to initiate an altcoin market advance. Bitcoin’s excellent market performance with institutional investor buy signals implies that Ethereum, together with other altcoins, likely faces further challenges in competing against Bitcoin.

Altcoin Season or Prolonged Bitcoin Leadership? What’s Next for the Market?

Commercial traders use the ETH/BTC ratio like a market cycle predictor, so many think current price patterns predict a major shift. The growth of Ethereum’s value relative to Bitcoin could trigger an altcoin season during which lesser coins would advance like Ethereum.

An extended period of market underperformance might occur for altcoins when Bitcoin maintains its position as a market leader. The new period ahead plays a vital role in showing what investors will do regarding cryptocurrency investments by choosing Bitcoin as their safest value asset.

The investment strategy should include tracking Bitcoin’s market dominance, examining Ethereum price trends, and assessing the influx of alternative coin liquidity. Analyzing these market factors will be vital to managing the upcoming market cycle and achieving optimal investment results. Bitcoin’s ongoing strength and the current low ETH/BTC ratio indicate that crypto markets still favor Bitcoin as their dominant cryptocurrency.