Bitcoin’s Long-Term Growth Rate Slows, Four-Year CAGR Sinks to 8%

Bitcoin’s Four-Year CAGR Falls to Record Lows as ETH/BTC Ratio Declines to 2020 Levels

Bitcoin’s (BTC) four-year compounded annual growth rate (CAGR) has dropped to a historic low of 8%, signaling a slowdown in long-term appreciation, according to data from Glassnode.

This metric, aligned with Bitcoin’s halving cycle, tracks the asset’s performance over a typical bull-bear market period. In March 2021, Bitcoin was trading near $60,000, close to the previous cycle’s peak. The declining CAGR reflects Bitcoin’s maturing market dynamics and reduced volatility over time.

However, context matters—while today’s CAGR appears weak, the 2021 reference point captured an overheated market phase. If BTC’s current $80,000 price level represents a cycle bottom, future gains could improve this metric.

Ethereum (ETH) has also struggled against Bitcoin, with the ETH/BTC ratio experiencing a negative CAGR of -6%. ETH’s price has remained stagnant since early 2021, failing to reclaim its previous highs and currently sitting below $2,000.

The ETH/BTC ratio has now fallen to 0.024, its lowest level since late 2020, highlighting Ethereum’s relative underperformance compared to Bitcoin in the current cycle.

  • Related Posts

    Crypto-related equities weaken in early trading with Bitcoin holding around $77,000.

    Crypto-linked U.S. stocks declined in pre-market trading as investors continued to assess President Donald Trump’s Friday nomination of Kevin Warsh as Federal Reserve chair, a development that contributed to a…

    Continue reading
    Struggling with losses on paper, Bitcoin ETF holders might throw in the towel.

    Investors in spot Bitcoin ETFs are now sitting on paper losses, creating the risk of redemptions if the market fails to stabilize. Bitcoin’s recent drop to $76,366 has left U.S.-listed…

    Continue reading