The bitcoin-ether ratio rallied to the highest level in three months on Monday as adverse macroeconomic conditions unexpectedly took a bigger toll on the native token of Ethereum's blockchain.
The ratio climbed to 15 on Monday, hitting the highest since Oct. 25, a chart provided by TradingView shows.
Bitcoin (BTC) has consistently outshined ether over the past six weeks, evidenced by the ratio's 32% increase since Dec. 8.
While ether (ETH) has declined 45% since then, amid heightened expectations of a U.S. Federal Reserve interest rate increase, bitcoin, despite being considered an inflation hedge and more sensitive to changes in borrowing costs in the traditional economy, has seen a more measured drop of 29%.
The price action counters the narrative that increased institutional participation in bitcoin has made it more vulnerable to macro factors.
The bitcoin-ether ratio has entered the bullish territory above the 200-day moving average. Should the ratio succeed in establishing a foothold above the critical technical line, it would imply a continued bitcoin outperformance in the near term.
"Bitcoin has cleared its 200-day [moving average] versus ether as risk-off conditions persist broadly," Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note shared with CoinDesk late Monday.
"If the ratio confirms the breakout on Friday [UTC close], it would support long-term outperformance by bitcoin, likely associated with additional volatility in the cryptocurrency space," Stockton added.