ETH/BTC Ratio Hits 2020 Low Amid Institutional Sell-Off

The ETH/BTC exchange rate has recently plummeted to 0.01791, marking its lowest point since 2020. This decline is attributed to escalating selling pressure from major institutions, including Galaxy Digital, Paradigm, and an address linked to the Ethereum Foundation.

Galaxy Digital transferred an additional 5,000 ETH, valued at approximately $8.11 million, to Binance on April 22, 2025. This transfer follows a previous move where Galaxy Digital transferred nearly $100 million worth of ETH to exchanges within a few days, raising speculation about a potential large-scale sell-off. Paradigm is also suspected of selling ETH, transferring 5,500 ETH, valued at around $8.65 million, to Anchorage Digital just three hours earlier. Additionally, an address associated with the Ethereum Foundation deposited 1,000 ETH, approximately $1.57 million, to the Kraken exchange.

These large transactions from major institutions are exerting significant pressure on ETH’s price, particularly as the ETH/BTC ratio hits its lowest point since 2020. The ETH/BTC ratio dropping to 0.01791 is a concerning signal for Ethereum, indicating that ETH is losing value relative to Bitcoin. This decline is partly due to Bitcoin's price nearing $90,000, which may prompt investors to shift toward Bitcoin, further intensifying selling pressure on ETH.

Beyond the increased selling pressure from whales, the Ethereum Foundation has a history of selling ETH multiple times recently. This suggests that large transactions from institutions can significantly impact price volatility or hinder ETH’s growth to some extent. Ethereum’s staking ratio currently stands at only 28%, significantly lower than competitors like Solana, which has a 65% staking ratio. This could erode investor confidence, especially since ETH offers less attractive staking yields. Moreover, Bitcoin dominance, reaching a four-year high, indicates that capital is flowing away from ETH and other altcoins.

Despite the current selling pressure raising concerns, some experts remain optimistic about Ethereum’s long-term prospects. Ethereum continues to lead as the top platform for DeFi and NFT applications, with a total value locked exceeding $45 billion as of April 2025. Furthermore, upgrades like Ethereum 2.0 and the full transition to Proof-of-Stake could enhance ETH’s performance and attract investors in the future. However, investors should exercise caution in the short term. If selling pressure from whales persists, ETH may face the risk of a deeper decline, especially since the ETH/BTC ratio shows no signs of recovery.