Bitcoin Dominance Rises Amid Crypto Bear Market

Fidelity's Q3 report has provided some key insights into the current state of the crypto market, which is still reeling from the effects of the bear market. One of the most notable trends is that the weighted Net Unrealized Profit/Loss (NUPL) has dropped to -0.01, indicating that the market is slightly below the breakeven line.

However, this drop in NUPL is largely due to the performance of Ethereum and Solana, both of which are recording unrealized losses. Bitcoin, on the other hand, remains a stabilizer, offsetting some of the loss pressure from these two assets. Despite this, the weighted NUPL would be even weaker if ETH and SOL had equal weight.

Another key indicator is the rise in Bitcoin's dominance to 68%, which is often accompanied by underperformance from other digital assets. This suggests that funds are still concentrated in BTC, and market risk appetite remains cautious. While the report does not predict a bottom for the market, it does suggest that October 2026 could be a time window worth paying attention to.