While Bitcoin has seen a decline from its all-time highs, it has still outperformed most other cryptocurrency sectors in recent months, reflecting ongoing capital and investment preferences for Bitcoin, according to Glassnode.
In the last three months, “the average return across nearly all crypto sectors has lagged behind Bitcoin,” reported the onchain analytics platform Glassnode on Tuesday.
“This ongoing relative weakness highlights a market dynamic where capital concentration favors BTC.”
These remarks followed a post from institutional-grade reporting platform Bitcoin Vector, which stated that the first half of the year was dominated by Bitcoin, but “the picture flipped” in the latter half.
Bitcoin Vector noted that “dominance trended lower, allowing for ETH rotation, but never fully reclaiming leadership afterward.”
They added that recent attempts to recover after the deleverage event have once again weakened by year-end, “indicating low confidence in BTC leadership and a market still in search of a clear anchor.”
Ether, AI, memes, and RWA all saw greater declines
Glassnode’s latest post seemingly contradicts this sentiment.
Bitcoin (BTC) has dropped by about 26% over the last three months, currently hovering around $86,000.
This performance is slightly better than the overall market capitalization decline of 27.5% during the same time, according to CoinMarketCap.
Ether (ETH) has significantly declined since the middle of September, falling approximately 36% to its current level below $3,000.
This trend is also reflected in various other sectors or token categories, including AI, which has dropped 48%, the memecoin market cap, which has plummeted 56%, and the real-world asset tokenization category, which is down 46% over the last three-month period, according to CoinMarketCap.
The DeFi token category has seen a 38% decline over the past three months, according to CoinGecko.
Bitcoin remains a safer choice in the crypto arena
Nick Ruck, director of LVRG Research, concurred, stating to Cointelegraph that data from the past three months shows capital inflows continue to favor Bitcoin, “highlighting a strong investor preference for BTC’s stability.”
Related: Bitcoin to reach new all-time high within 6 months: Grayscale
“This capital concentration underscores Bitcoin’s dominant position in the market, leaving altcoins struggling to maintain relevance in the current environment,” he added.
“This trend is likely fueled by Bitcoin’s established reputation and growing institutional interest, which enhances its attractiveness as a safer option in the volatile crypto landscape.”
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