As of Wednesday, the ETH/BTC pair is trading at 0.019, a level not seen since January 2020. This massive downtrend has sparked renewed interest in the ongoing relationship between the two leading cryptocurrencies—Bitcoin and Ethereum—especially considering the significant divergence between them in recent months.

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In March 2024, Bitcoin achieved a new all-time high, while Ethereum lagged, remaining about 20% off its highs before topping out near $4,100 in early March of the same year. This divergence marked a stark contrast between the performance of the two assets, with Bitcoin pushing to new highs while Ethereum struggled to keep pace.

Screenshot via TradingView User @NoticeTrades)

Fast forward to April 2024, and the gap has only widened. Ethereum is currently trading at $1,590, down 61% from the swing high formed in early December. In comparison, Bitcoin is down only 28% from its high in January, showing a more resilient performance in the face of market volatility.

With Ethereum’s price struggling while Bitcoin maintains relative strength, the question remains: Can Ethereum mount a comeback, or will it continue to underperform against its more dominant ‘counterpart’?

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The Reality of Picking Altcoins: Can They Outperform Bitcoin?

Many investors are drawn to altcoins, hoping they can outperform Bitcoin. However, much like in the stock market, consistently picking winners is difficult. In traditional markets, even top fund managers struggle to beat broad indices like the S&P 500. The same applies to crypto—Bitcoin is the market leader, setting trends and capturing most capital flows.

While altcoins can surge at times, many fail to maintain long-term relevance or underperform during market corrections. Ethereum’s recent struggle to keep up with Bitcoin’s rally highlights this challenge. Like in stocks, a diversified approach—holding Bitcoin as a core position while selectively investing in altcoins with strong fundamentals—remains the safest strategy. Ultimately, Bitcoin’s dominance makes it hard for altcoins to consistently outperform.