Bitcoin’s Four-Year CAGR Drops to Record Low as ETH/BTC Ratio Hits 2020 Levels
Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has fallen to an all-time low of 8%, according to data from Glassnode.
The four-year timeframe aligns with Bitcoin’s halving cycle and captures the typical market dynamics of bull and bear cycles. In March 2021, BTC was trading near $60,000, close to the peak of the previous cycle. As Bitcoin matures, a decline in CAGR is expected, reflecting reduced volatility and lower returns over time.
However, this metric is heavily influenced by reference points. The 2021 figure reflects a cycle peak, whereas BTC’s current price of $80,000 in March 2025 could represent a cycle low.
Meanwhile, Ethereum’s (ETH) performance relative to Bitcoin has also weakened. The ETH/BTC ratio has entered negative CAGR territory at -6%, indicating Ethereum’s underperformance against Bitcoin over the same period. ETH’s price has remained relatively stagnant since February 2021, now sitting below $2,000.
At present, the ETH/BTC ratio has dropped to 0.024—its lowest level since late 2020.
