Ethereum hits lowest level against Bitcoin in 5 years after sharp quarterly decline

Ethereum’s performance compared to Bitcoin has fallen to the lowest level in five years, highlighting Ether’s struggles. According to Glassnode data, the ETH/BTC ratio is now at 0.02191 after ETH dropped 39% against BTC.

This decline in ETH marks the first time that the altcoin will underperform BTC in a post-halving year. It also raises more questions about Ether, down 45.98% in this first quarter and having its worst Q1 performance since 2018, when it recorded a 46.61% decline.

ETH and BTC have struggled throughout 2025

The bad quarterly performance for ETH captures just how bad a year it has been, given that this period is historically the best for the asset. Per Coinglass data, ETH has seen an average gain of 77% throughout its Q1s. Even worse, the ETH ETFs have also had 17 days of consecutive outflows, which only ended on Friday, March 27.

Interestingly, Bitcoin has also struggled this year and is set to finish 2025 Q1 with its worst first-quarter performance since 2018 after falling to $82,000. The flagship asset, which had risen to $88,000 in its rebound a few days ago, is now retreating into the lower $80,000 range.

According to data from Coinglass, BTC is on track to finish the quarter with a 12.18% decline. This would be the worst Q1 performance for BTC since 2018 when it recorded a 49.7% drop in value. Q1 is generally a good time for BTC, especially in the past decade. Since 2013, BTC has seen an average of 51% gain, with three positive Q1s in the last five years, making it its second-best period in a year.

BTC’s struggles in the last two months contrast with its positive momentum at the start of the year. The earlier optimism fueled its rise to $108,000, but now, it seems like a thing of the past since Donald Trump was sworn in and trade wars began.

However, other factors have also affected BTC performance. These include the decline in institutional interest as evidenced in the spot Bitcoin exchange-traded funds (ETFs) flow this year. The longest inflow streak into Bitcoin ETFs this year is ten days, and it recently ended on Friday, March 28, with overall flow being just around $1 billion.

What will Q2 bring?

Meanwhile, it is not certain whether Q2 will bring much-needed reprieve to BTC and the crypto industry. However, some market experts are optimistic about what is coming next. This includes 21st Capital co-founder Sina G, who believes the bull market has not ended and the current phase is undervalued-neutral territory.

In his opinion, there will soon be a de-escalation of the trade wars that are causing market uncertainties and leading to a crash in the crypto market. Once that happens, the market can expect price reversals.

He said:

“Within a quarter or less, uncertainty around tariffs and government spending cuts will likely be resolved. Focus will then shift to tax cuts, deregulation, and rate cuts.”

Others also hold this view, including crypto podcaster Colin Talks Crypto, who predicted that Bitcoin could start its next major blast-off by April 30. According to CryptoQuant data, experienced market participants appear to believe this.

CryptoQuant analyst Axel Adler Jr. noted that experienced players are now accumulating and holding BTC. These were the same traders who were selling at the top before, and their change in strategy is a signal that they do not consider the current price range good for profit-taking.

He said:

“The transition of experienced players into a holding (accumulation) phase signals the potential for further BTC growth in the medium term.”

Traders have also started moving BTC off exchanges, with over 30,000 BTC withdrawn in the past week, according to Santiment. These signals, coupled with historical data showing that Bitcoin and Ethereum usually have a positive performance in Q2, have contributed to the renewed optimism for the next three months.

Nevertheless, things could get choppy for the crypto market in early April. President Trump is set to announce a new set of reciprocal tariffs on April 2, and the US inflation data will be released on April 10.

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