Bitcoin Dominance Holds Strong at 59% as Options Overtake Futures
The latest Charting Crypto report from Coinbase and Glassnode has revealed that Bitcoin (BTC) dominance remains strong at 59%, even as smaller assets struggled to maintain their gains in Q1. The report, released on January 27, analyzed proprietary on-chain data and surveyed institutional investors to assess market conditions.
One notable shift observed by the report is a decrease in leverage, with options open interest surpassing perpetual futures for the first time since October's deleveraging event. This change indicates that participants are now hedging against potential losses rather than taking on excessive risk.
The report also found that BTC supply actively traded 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 performance cycle, which began from June 2022 lows, with traditional cycle frameworks losing predictive power due to structural changes in the ecosystem.