Despite the market decline, Bitcoin outperforms Altcoins
Despite the decline from the all-time high, Bitcoin has still performed better than most other cryptocurrency sectors in recent months, indicating that capital and investment will continue to favor Bitcoin, according to Glassnode.
Over the past three months, “Bitcoin's average return across all crypto sectors has underperformed,” onchain analytics platform Glassnode reported Tuesday.
“This persistent relative weakness highlights the market conditions in which capital concentration favors BTC.”
The comments came in response to a post from institutional reporting platform Bitcoin Vector that said Bitcoin dominated the first half of the year, but that “the picture reversed” in the second half.
As Bitcoin Vector explained, “its dominance has waned, giving way to ETH's ride, but it hasn't completely regained its lead since then.
He added that recent attempts to rebuild the proxy event weakened again at the end of the year, with “low confidence in BTC's leadership and the market still looking for a clear anchor.”
Ether, AI, memes and RWA all fell hard
Glassnode's latest post seems to disagree with that sentiment.
Bitcoin (BTC) retreated by about 26% in the last three months, the current level has reached $86,000.
This is slightly better than the 27.5% decline in total market capitalization over the same period, according to CoinMarketCap.
Ether (ETH) has taken a significant hit since mid-September, falling nearly 36% below $3,000 at current levels.
According to CoinMarketCap, it decreased by 46% for many other sectors or token categories, such as AI, which decreased by 48%, memecoin comprised 56% of the market capitalization, and the real world property token category, according to CoinMarketCap, decreased by 46%.
According to CoinGecko, the DeFi token category has dropped 38% in the past three months.
Bitcoin remains the safest place in crypto
Nick Rook, director of research at LVRG, agreed, telling Cointelegraph that data from the past three months indicate that capital inflows show a strong investor preference for BTC stability.
Related: Bitcoin to hit new all-time high in 6 months: Grayscale
“This concentration of capital highlights the dominant position of Bitcoin in the market, leaving altcoins struggling to remain relevant in the current environment,” he added.
“This trend may be due to Bitcoin's established reputation and increasing institutional interest, which will strengthen its appeal as a safer place in the changing crypto landscape.”
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