Many people focus only on the prices of Bitcoin and Ethereum, neglecting the critical indicator of the ETH/BTC exchange rate. In fact, the ETH/BTC exchange rate not only reflects the flow of market funds but also reveals the cycles and rhythms of the bull market. If you want to seize opportunities in the next bull market, this ratio is definitely worth studying.
1. ETH/BTC exchange rate skyrocketing: Signal of the mid-to-late stages of the bull market
In the early stages of a bull market, large funds often flow into Bitcoin due to its high market acceptance and relatively low risk. At this time, the ETH/BTC exchange rate is usually quite low. When market sentiment is high and funds begin to shift towards Ethereum and other altcoins, the ETH/BTC exchange rate will rise rapidly.
Historically, the rapid rise of ETH/BTC has almost always occurred in the mid-to-late stages of a bull market. For example: 2017 bull market: ETH/BTC rose from 0.02 all the way to 0.15, then the bull market peaked. 2021 bull market: ETH/BTC rose from 0.03 to 0.08, and the market also experienced high-level fluctuations thereafter.
If ETH/BTC suddenly skyrockets, it may signal that the bull market is reaching its climax, but one should also be wary of the approaching peak.
2. ETH/BTC peak: The 'barometer' of the bull market
The peak of ETH/BTC often means that funds have shifted from Bitcoin to Ethereum and other riskier assets. Once ETH/BTC peaks and declines, this may signal that the bull market is about to end. For example, after the peak of ETH/BTC in 2021, the market quickly entered a correction period.
3. How to use ETH/BTC to judge market sentiment
ETH/BTC rise: Indicates that market sentiment is optimistic, and funds prefer high-yield assets.
ETH/BTC decline: Indicates that market risk aversion is rising, and funds are beginning to flow back into Bitcoin or even exit the market.
This ratio can help you grasp the direction of fund flow and is a key signal for the rotation of funds in a bull market.
Future outlook: Will the 2025 bull market repeat history?
If 2025 really is the peak of this bull market, we are likely to see a significant rise in ETH/BTC once again, especially if Ethereum applications (such as DeFi, NFTs) continue to expand. Smart investors can judge the market phase by observing the trends of ETH/BTC:
Low exchange rate: The market may still be in the early stages of a bull market, prioritizing Bitcoin allocation. Rising exchange rate: The market enters the mid-to-late stages, with funds beginning to flow into Ethereum and popular altcoins. High exchange rate: The peak of the bull market may be approaching, and timely profit locking is necessary.
The ETH/BTC exchange rate acts like a 'thermometer' of the bull market, helping you sense the flow of funds and market rhythm. In this bull market, if you want to make early arrangements or find the right time to cash out at a high, this indicator is definitely worth your attention! Remember this: When ETH/BTC rises, it signals that funds are flowing into Ethereum and altcoins in the bull market—this is both an opportunity and a risk! However, risk is the premium of the bull market! Seize the risk!
