Bitcoin fell 26% in three months but outperformed most crypto sectors as Ether dropped 36%, AI tokens fell 48%, and memecoins dipped 56%.
Despite a decline from all-time highs, Bitcoin has still performed better than most other cryptocurrency sectors in recent months, indicating that capital and investment continue to favor Bitcoin, according to Glassnode.
Over the past three months, “the average return across nearly all crypto sectors has underperformed Bitcoin,” reported onchain analytics platform Glassnode on Tuesday.
“This persistent relative weakness highlights a market environment where capital concentration favours BTC.”
The comments came in response to a post from institutional-grade reporting platform Bitcoin Vector stating that the first half of the year was Bitcoin-dominated, but “the picture flipped” in the second half.
Bitcoin Vector explained that “dominance trended lower, making room for ETH rotation, but never fully reclaiming leadership afterward.”
They added that recent attempts to rebuild after the deleverage event have weakened again by year-end, “signaling low conviction in BTC leadership and a market still searching for a clear anchor.”
Glassnode’s latest post appears to disagree with this sentiment.
Bitcoin (BTC) has retreated by around 26% over the past three months, reaching current levels of around $86,000.
This is slightly better than the overall decline in total market capitalization of 27.5% over the same period, according to CoinMarketCap.
Ether (ETH) has taken a significant hit since mid-September, falling approximately 36% to its current levels below $3,000.
The same theme is true for many other sectors or token categories, such as AI, which has declined 48%, memecoin market cap, which has tanked 56%, and the real-world asset tokenization category, which is down 46% over the three-month period, according to CoinMarketCap.
The DeFi token category is down 38% over the past three months, according to CoinGecko.
Nick Ruck, director of LVRG Research, agreed, telling Cointelegraph that the data over the past three months indicates that capital inflows continue to favor Bitcoin, “reflecting a strong investor preference for BTC’s stability.”
Related: Bitcoin to hit new all-time high within 6 months: Grayscale
“This capital concentration underscores Bitcoin’s dominant position in the market, leaving altcoins struggling to stay relevant amid the current environment,” he added.
“This trend is likely driven by Bitcoin’s established reputation and increasing institutional interest, which bolster its appeal as a safer haven in the volatile crypto landscape.”
