A ratio comparing the price of Bitcoin, the largest digital asset, with second-ranked Ether hints at a possible waning of risk appetite in crypto.

The ratio scaled 20 this week and reached the highest level since April 2021, reflecting more resilient demand for the oldest cryptocurrency rather than the smaller rival.

This pattern could be “a very early signal” of FOMO – or fear of missing out – morphing into “fear” if Ether is viewed as a proxy for sentiment toward smaller tokens, crypto asset trading company QCP Capital wrote in a note on Friday (Apr 5).

Bitcoin reached a record high of US$73,798 in mid-March atop a surge of inflows into dedicated US exchange-traded funds that debuted in January. The token has since retreated about 9 per cent as ETF demand cooled. A gauge of smaller digital assets has slumped even more over the same period, shedding some 20 per cent.

Looking beyond the crypto market, a potential Bitcoin top as investors lose appetite for cryptocurrencies “signals a weaker stock market,” Stifel Nicolaus & Co. strategists including Barry Bannister wrote in a note this week.

Crypto traders are now awaiting a four-yearly event known as the Bitcoin halving, which reduces new supply of the token. Doubts have emerged over whether the halving will live up to its reputation of being a bullish tailwind.

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Bitcoin was steady at US$67,825 as of 5:25 pm Friday in New York, while Ether was also little changed at US$3,340. BLOOMBERG