Bitcoin’s Four-Year CAGR Drops to Record Low 8% as Asset Matures

Bitcoin's four-year growth rate hits historic low amid shifting market metrics

  • Bitcoin‘s four-year compound annual growth rate (CAGR) has reached its lowest recorded level at 8%, according to Glassnode data.
  • The timing of measurement significantly impacts CAGR calculations, with March 2021 representing a market peak versus potential cycle bottom in 2025.
  • The ETH/BTC ratio has entered negative territory with a -6% CAGR, with Ethereum‘s token now at its lowest ratio to Bitcoin since late 2020.

Bitcoin’s four-year growth rate has fallen to a historic low, reflecting the cryptocurrency’s maturing market dynamics. According to data from Glassnode, Bitcoin (BTC) currently shows an 8% compound annual growth rate (CAGR) over the past four years, marking the lowest such measurement in the asset’s history.

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Analysts selected the four-year timeframe specifically to align with Bitcoin’s halving cycle, which typically corresponds with the cryptocurrency’s bull and bear market patterns. These halving events, when Bitcoin mining rewards are cut in half, have historically influenced price movements in predictable cycles.

The current measurement compares Bitcoin’s value to March 2021, when the cryptocurrency was trading near $60,000 during what many consider a premature peak in the previous market cycle. This timing has significantly impacted the CAGR calculation.

Market observers note that Bitcoin’s declining volatility and reduced percentage returns represent natural developments for an increasingly established asset class. As cryptocurrency markets mature and attract institutional capital, such moderation in growth rates is expected.

The CAGR metric’s dependence on reference timing highlights an important analytical challenge. While comparing to the 2021 peak naturally produces lower growth figures, the current $80,000 price level could potentially represent a cycle bottom when measured from March 2025, which would paint a dramatically different picture of Bitcoin’s performance.

Meanwhile, Ethereum’s native token (ETH) has shown even more challenging performance metrics. The ETH/BTC ratio has entered negative territory with a CAGR of -6%, demonstrating Ethereum’s underperformance compared to Bitcoin over the same four-year period.

This decline stems largely from ethereum’s price stagnation since February 2021, with the token currently trading below $2,000. The current ETH/BTC ratio stands at 0.024, representing its lowest point since late 2020.

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The divergence between Bitcoin and Ethereum’s performance metrics provides valuable insights for cryptocurrency investors adjusting their portfolio strategies in response to changing market dynamics in the maturing digital asset landscape.

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