Although the crypto market has cooled down significantly in recent months, Bitcoin has held up relatively better than most other digital currencies. This is evident from new figures from analysis platform Glassnode. According to the company, capital continues to be concentrated around Bitcoin, while other crypto sectors have clearly been hit harder.
Altcoins fall harder
Over the past three months, the price of Bitcoin fell by approximately 26 percent. That is significant, but less than the blows that many other parts of the crypto market had to take. Glassnode therefore speaks of a market in which investors are once again opting for the relatively “safe” core of the sector.
Other well-known crypto coins and themes clearly performed worse. Ethereum, the second largest cryptocurrency, lost about 36 percent of its value over the same period. Tokens linked to artificial intelligence even fell by almost 50 percent, while so-called memecoins lost more than half of their combined market value.
Sectors that previously received a lot of attention, such as real-world assets (digital tokens linked to real assets) and DeFi projects, also saw their prices fall by 40 percent or more.
Capital seeks security
According to Glassnode, this shows that investors prefer Bitcoin over riskier alternatives in troubled times. “Capital continues to concentrate around BTC,” the analytics firm said. This points to a market in which investors are cautious and less willing to take risks in smaller or more speculative projects.
Researchers point out that Bitcoin is increasingly seen as a kind of anchor within the crypto market. Institutional investors are showing more interest in Bitcoin than in other currencies, partly due to the arrival of listed products and clearer regulations in some countries.
Search for direction
Yet the situation is not clear-cut. Some market watchers note that Bitcoin’s dominance has actually declined slightly over the year, with brief periods of capital flowing towards other currencies. However, these movements did not last, which is why the market is still looking for a clear direction, according to Glassnode.
For the time being, despite the recent price drops, Bitcoin seems to retain its role as a relatively stable core of the crypto market. Other sectors will first have to regain confidence before investors participate again on a large scale.
Source: https://newsbit.nl/bitcoin-blijft-relatief-sterk-in-zwakke-cryptomarkt-blijkt-uit-glassnode-data/
