Despite falling from all-time highs, Bitcoin has still performed better than most other crypto sectors in recent months, indicating that capital and investment continues to favor Bitcoin, according to Glassnode.
Over the past three months, “the average return of almost every crypto sector has been lower than Bitcoin,” on-chain analytics platform Glassnode reported on Tuesday.
“This sustained relative weakness highlights a market environment where capital concentration favors BTC.”
The comment was in response to a post from Bitcoin Vector, an institutional reporting platform, which said that while Bitcoin dominated the first half of the year, “the situation reversed” in the second half.
Bitcoin Vector explained that its “dominance was on the decline, creating room for ETH rotation, but it never fully regained leadership.”
Furthermore, recent attempts to rebuild after the deleveraging event weakened again by the end of the year, “demonstrating low confidence in Bitcoin’s leadership and that the market is still looking for a clear anchor.”
Ether, AI, Memes, RWA all fell significantly
Glassnode’s latest post doesn’t seem to agree with this opinion.
Bitcoin (BTC) has fallen about 26% in the past three months, reaching current levels of about $86,000.
This is slightly better than the 27.5% decline in overall market capitalization over the same period, according to CoinMarketCap.
Ether (ETH) has taken a big hit since mid-September, dropping around 36% to current levels below $3,000.
The same theme holds true for many other sectors and token categories, including AI, which is down 48%, memecoin market cap, which is down 56%, and the real-world asset tokenization category, which is down 46% in three months, according to CoinMarketCap.
According to CoinGecko, the DeFi token category has declined by 38% in the past three months.
Bitcoin remains a safer haven for cryptocurrencies
Nick Luck, Director of LVRG Research, agreed, telling Cointelegraph that the past three months of data show that capital inflows continue to favor Bitcoin, “reflecting investors’ strong preference for BTC stability.”
Related: Bitcoin to hit new all-time high within 6 months: Grayscale
“This concentration of capital highlights Bitcoin’s dominant position in the market, with altcoins struggling to maintain their presence in the current environment,” he added.
“This trend is likely driven by Bitcoin’s established reputation and growing interest from institutional investors, which increases its appeal as a safer haven in a volatile crypto environment.”
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