Bitcoin Dominance Hits 59% as Options Overtake Futures in Crypto Market
The crypto market has entered 2026 with lower leverage and more disciplined risk positioning, according to a report from Coinbase and on-chain analytics firm Glassnode. The two firms published their quarterly Charting Crypto report on January 27, which assesses market conditions for the first quarter.
Bitcoin (BTC) retains structural leadership, with its dominance holding near 59%. Mid- and small-cap assets failed to sustain gains from earlier rallies, while options open interest now exceeds perpetual futures following October's deleveraging event. Positions have shifted toward protective structures as participants hedge against further downside rather than exiting risk entirely.
The report also noted that BTC supply active within three months increased to 37% in Q4, while long-dormant supply declined modestly. Ethereum (ETH) appears to be approaching the later stages of its current performance cycle, which began from June 2022 lows. The report found that structural changes to Ethereum's ecosystem have diluted the predictive power of traditional cycle frameworks.