ETH/BTC Ratio

Definition ∞ The ETH/BTC ratio represents the relative value of Ether (ETH) compared to Bitcoin (BTC), expressed as a quotient. This metric is a key indicator of the performance differential between the two largest cryptocurrencies by market capitalization. Analyzing this ratio helps traders and analysts gauge investor preference and the prevailing sentiment towards alternative cryptocurrencies relative to Bitcoin. Context ∞ The ETH/BTC ratio is a critical barometer for assessing the strength of the altcoin market against Bitcoin. Shifts in this ratio are often interpreted as indicators of market rotation, where capital may be moving from Bitcoin into Ether and other altcoins, or vice versa. Recent performance trends and technological developments in the Ethereum ecosystem are closely watched for their potential impact on this ratio.