While Bitcoin has seen a drop from its peak, it has outperformed many other cryptocurrency sectors in recent months, suggesting ongoing investment interest in Bitcoin, as per Glassnode.
In the last three months, “the average return across nearly all crypto sectors has lagged behind Bitcoin,” noted onchain analytics platform Glassnode on Tuesday.
“This enduring relative weakness emphasizes a market where capital is concentrated in BTC.”
This statement was made following a post from institutional reporting platform Bitcoin Vector, which claimed the first half of the year was dominated by Bitcoin, but “the scenario changed” in the second half.
Bitcoin Vector elaborated that “dominance decreased, allowing for ETH rotation, yet it never regained full leadership.”
They noted that recent efforts to recover post-deleveraging have faltered again by year-end, “indicating low confidence in BTC leadership and a market still in search of a solid anchor.”
Ether, AI, memes, and RWA all declined more steeply
Glassnode’s latest insights seem to contradict this perspective.
Bitcoin (BTC) has dropped about 26% over the past three months, currently sitting around $86,000.
This decline is slightly better than the total market capitalization drop of 27.5% during the same timeframe, according to CoinMarketCap.
Ether (ETH) has suffered significantly since mid-September, dropping around 36% to below $3,000.
The same trend holds for various sectors or token categories, including AI, which has plummeted 48%, memecoins which have decreased 56%, and the tokenization of real-world assets, down 46% in the last three months, as per CoinMarketCap.
The DeFi token sector is down 38% over this period, according to CoinGecko.
Bitcoin remains a safer haven in crypto
Nick Ruck, director of LVRG Research, concurred, stating to Cointelegraph that recent data indicates capital inflows are favoring Bitcoin, “reflecting a strong investor preference for BTC’s stability.”
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“This capital concentration highlights Bitcoin’s leading position in the market, leaving altcoins struggling to maintain relevance in the current landscape,” he elaborated.
“This trend is likely influenced by Bitcoin’s established reputation and growing institutional interest, enhancing its appeal as a safer option in the volatile crypto environment.”
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