Despite falling from all-time highs, Bitcoin has still outperformed most other cryptocurrency sectors in recent months, indicating that capital and investments proceed to favor Bitcoin, based on Glassnode.
Over the past three months, “the typical return in just about all crypto sectors has underperformed that of Bitcoin,” on-chain analytics platform Glassnode reported on Tuesday.
“This continued relative weakness highlights a market environment where capital concentration favors BTC.”
The comments got here in response to a post by institutional reporting platform Bitcoin Vector that said the primary half of the 12 months was dominated by Bitcoin, but “the image turned” within the second half.
Bitcoin Vector explained that “dominance tended to diminish, which created room for ETH rotation, but never fully regained the lead after that.”
They added that recent attempts to rebuild after the deleveraging event had subsided again by year-end, “suggesting that BTC isn’t any longer as confident in BTC's leadership and that the market remains to be searching for a transparent anchor.”
Ether, AI, Memes and RWA all fell more sharply
Glassnode's latest post seems to disagree with this opinion.
Bitcoin (BTC) has declined by around 26% over the past three months and is currently at levels around $86,000.
According to CoinMarketCap, that is barely higher than the general 27.5% decline in total market cap over the identical period.
Most other crypto sectors saw larger declines than Bitcoin. Source: Glassnode
Ether (ETH) has suffered a big decline since mid-September, falling around 36% to its current level below $3,000.
The same theme applies to many other sectors or token categories, equivalent to AI, which is down 48%, memecoin market cap, which is down 56%, and the real-world asset tokenization category, which is down 46% over the three-month period, based on CoinMarketCap.
According to CoinGecko, the DeFi token category is down 38% within the last three months.
Bitcoin stays a refuge within the crypto space
Nick Ruck, director of LVRG Research, agreed, telling Cointelegraph that data over the past three months suggests capital inflows proceed to favor Bitcoin, “reflecting a powerful investor preference for BTC’s stability.”
“This concentration of capital highlights Bitcoin’s dominance out there and means altcoins are struggling to stay relevant in the present environment,” he added.
“This trend is probably going because of Bitcoin’s established popularity and increasing institutional interest, strengthening its appeal as a refuge within the volatile crypto landscape.”
