Bitcoin Surges 50% to $89,822 Amid US-China Trade Tensions, Ethereum Drops 62%

Bitcoin has been on a strong upward trajectory, approaching the $90,000 mark. This surge coincides with escalating trade tensions between the United States and China, which has driven investors to seek out hedge assets. The top cryptocurrency reached a peak of $89,822 on April 22, its highest point since March, as the US market was about to open. This price performance reflects a growing interest in safe-haven assets, similar to the recent surge in gold prices, which hit a new all-time high of $3,500 per ounce. Over the past 12 months, gold prices have risen by more than 50%, outperforming the S&P 500 since the start of 2020. Bitcoin’s rally suggests that it may be catching up, as both assets respond to mounting macroeconomic uncertainty.

While Bitcoin gains strength, Ethereum is heading in the opposite direction. The ETH/BTC ratio has fallen to 0.018, its weakest reading in over five years. Over the past year, Ethereum has underperformed significantly versus Bitcoin. The ETH/BTC pair has dropped more than 62%, reflecting weaker demand and fading market confidence. As a result, Ethereum’s price struggles have led to a sharp drop in its market dominance. Currently, ETH accounts for just around 7% of the total crypto market cap, the lowest share since May 2019. Market analysts attribute this trend to weaker institutional interest in Ethereum compared to Bitcoin and a lack of major catalysts pushing ETH price action.