Bitcoin Dominance Hits New High as Altcoins Struggle
A stark reversal of fortunes has occurred in the cryptocurrency market over the past two years. While Bitcoin gained 28%, the median mid-cap altcoin lost 74%, and Ethereum landed roughly sideways, according to a report from Glassnode and Bybit.
This divergence is seen as the defining feature of this cycle, with Bitcoin compounding higher while the mid-cap complex 'halves and halves again.'
The concentration of gains at the top shows up in the way leverage is distributed. Bitcoin carries futures open interest worth about 2% of its market capitalization, while speculative small caps carry far more, with $PEPE near 24%. This means that the froth has pooled in the market's riskiest corners even as its safest asset has done the heavy lifting on price.
The report highlights that institutional demand still tilts heavily toward Bitcoin. Spot Bitcoin ETFs have pulled in about $55.2 billion in cumulative net inflows, dwarfing the roughly $13.1 billion into Ethereum funds.