Although it has seen a downturn from its all-time highs, Bitcoin has outperformed most cryptocurrency sectors in recent months, indicating that investment and capital still favor Bitcoin, according to Glassnode.
In the last three months, “the average return across nearly all crypto sectors has lagged behind Bitcoin,” reported the on-chain analytics platform Glassnode on Tuesday.
“This ongoing relative weakness underscores a market environment where capital concentration favors BTC.”
This statement was in response to a post from institutional-grade reporting platform Bitcoin Vector, which noted that the first half of the year was dominated by Bitcoin, but “the picture flipped” in the second half.
Bitcoin Vector explained that “dominance trended lower, allowing space for ETH rotation, but never fully reclaiming leadership afterward.”
They added that recent attempts to recover after the deleverage event have declined again by year-end, “indicating low confidence in BTC leadership and a market still seeking a clear anchor.”
Ether, AI, memes, and RWA all experienced greater declines
Glassnode’s recent post seems to contradict this view.
Bitcoin (BTC) has dropped about 26% over the past three months, now trading at approximately $86,000.
This is slightly better than the overall decline in total market capitalization of 27.5% during the same period, according to CoinMarketCap.
Ether (ETH) has suffered a notable downturn since mid-September, declining roughly 36% to its current value below $3,000.
The same pattern holds for various other sectors or token categories, such as AI, which has sunk 48%, the memecoin market cap, which has plummeted 56%, and the real-world asset tokenization sector, which is down 46% over the three months, according to CoinMarketCap.
The DeFi token category has also receded by 38% in the past three months, according to CoinGecko.
Bitcoin remains a secure haven within crypto
Nick Ruck, director of LVRG Research, concurred, telling Cointelegraph that recent data indicates that capital inflows continue to favor Bitcoin, “reflecting a strong investor preference for BTC’s stability.”
Related: Bitcoin to reach new all-time high within 6 months: Grayscale
“This concentration of capital emphasizes Bitcoin’s dominant role in the market, leaving altcoins struggling to maintain relevance in the current landscape,” he added.
“This trend is likely fueled by Bitcoin’s established reputation and growing institutional interest, which enhance its appeal as a safer haven in the volatile crypto environment.”
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