PANews reported on March 12 that according to CoinFesk, based on glassnode data, the 4-year compound annual growth rate (CAGR) of BTC has dropped to the lowest level on record, which is 8%. The 4-year timeframe is chosen to align with the Bitcoin halving cycle, and also covers a typical bull/bear market cycle, which often follows a similar timeframe.
4 years ago in March 2021, the trading price of BTC was around $60,000, close to the peak of the previous market cycle. As the BTC asset matures, its volatility and returns are expected to decrease over time, and therefore the compound annual growth rate is expected to decline. However, this metric is highly dependent on the reference point. In 2021, BTC experienced a surge to the top in the early stage of the cycle, while by March 2025, $80,000 may mark the arrival of the bottom of the cycle.
The ETH/BTC ratio has now entered the negative negative compound annual growth rate territory, at -6%, reflecting the underperformance of Ethereum relative to BTC. This decline is mainly due to the fact that the price of Ethereum has remained relatively flat since February 2021, currently below $2,000. Currently, the ETH/BTC ratio is 0.024, the lowest level since the end of 2020.
