Bitcoin Reigns Supreme as Altcoins Struggle
A recent report from analytics firm Glassnode and crypto exchange Bybit reveals that over the past two years, Bitcoin has been the clear winner in the cryptocurrency market. While Bitcoin gained a respectable 28%, the median mid-cap altcoin lost a staggering 74%.
Ethereum, the second-largest cryptocurrency, fared somewhat better but still landed roughly sideways during this period. This stark reversal of the usual 'altseason' pattern has seen capital concentrated at the top, with Bitcoin doing the heavy lifting on price.
The report also highlights the concentration of leverage in the market's riskiest corners. Bitcoin carries futures open interest worth about 2% of its market cap, while speculative small caps carry far more, with PEPE near 24%. This has led to a chasm between Bitcoin and the rest of the market.
The current trend may be turning, however. Just days ago, Bitcoin surged back above $80,000 after a dovish Federal Reserve forecast, dragging the broader market with it. Several majors outran Bitcoin in the bounce, hinting at the kind of breadth that had been missing for a year.