The comparison between Bitcoin and Ethereum, known as the Bitcoin-to-Ethereum ratio, is a significant indicator reflecting market sentiment and the relative strength of these top two cryptocurrencies. Recently, this ratio has shown a warning signal that could have significant implications for the broader crypto market.

Examining the Bitcoin-to-Ethereum ratio provides insight into investors' risk appetite towards alternative cryptocurrencies. When this ratio is rising, it indicates that Bitcoin is outperforming Ethereum, while a falling ratio suggests the opposite.

In the latest trading session, the BTC/ETH ratio peaked at 20.76, its highest level since April 2021. This trend signals a stronger demand for Bitcoin compared to Ethereum. Analysts at Bloomberg have noted that this trend could be an early indication of fear of missing out (FOMO) transitioning into fear if Ethereum is seen as a proxy for sentiment towards smaller tokens or alternative cryptocurrencies.

One driving factor behind Bitcoin's dominance is the increasing institutional interest in the cryptocurrency. Bitcoin reached a new high of $73,798 in mid-March, buoyed by inflows into dedicated U.S. exchange-traded funds launched earlier in the year.

While Bitcoin has retreated approximately 9.33% from its all-time high as ETF demand has eased, the broader market has also seen declines. The momentum from ETFs has slowed down due in part to economic signals hinting at higher-than-expected interest rates.

As of the most recent 24-hour period, Bitcoin had dropped by 0.37% to $66,563, while Ethereum fell by 3.06% to $3247. Additionally, many alternative cryptocurrencies (altcoins) experienced more significant losses compared to Bitcoin and Ethereum.