The Great Decoupling: Why Ethereum is Bleeding Against Bitcoin

The ETH/BTC ratio has plunged to its lowest level in 10 months, marking a drop of over 35% from its peak in August 2025, driven by a massive divergence in capital flows favoring Bitcoin. Institutional investors are overwhelmingly favoring Bitcoin, with spot Bitcoin ETFs attracting hundreds of millions in inflows. Ethereum is struggling to maintain its premium valuation amidst intense competition from alternative Layer 1 blockchains.