Bitcoin's Dominance Continues as Altcoin Gains Lag

Over the past two years, Bitcoin has seen significant gains while other cryptocurrencies have struggled. According to a joint report by Glassnode and Bybit, Bitcoin rose by 28% in value over this period. In contrast, mid-cap altcoins saw their median return fall by a staggering 74%. Ethereum was essentially flat, showing that the uptrend was concentrated in Bitcoin.

The report also noted that leverage was heavily concentrated in higher-risk assets. While Bitcoin futures open interest accounted for just 2% of its market value, PEPE - a small and speculative altcoin - had an open interest of around 24%. This suggests that investors were taking on more risk as they bet on smaller cryptocurrencies.

The trend is unusual, as typical bull markets see funds flow from Bitcoin into smaller and mid-sized tokens. However, in this cycle, the rotation did not occur. Even Ethereum, the second-largest cryptocurrency by market value, failed to show significant gains over the same period.