Glassnode: Bitcoin Outperformed Most Crypto Sectors Despite 3-Month Pullback
Glassnode on-chain data show Bitcoin (BTC) fell about 26% over the past three months but outperformed other crypto sectors as total market capitalization dropped roughly 27.5% (CoinMarketCap). Ether (ETH) fell ~36%, DeFi tokens ~38% (CoinGecko), AI-related tokens ~48%, memecoins ~56%, and real-world-asset (RWA) tokens ~46%. Bitcoin’s relative strength reflects capital concentration toward BTC as investors reduce risk but remain in crypto. BTC dominance rose earlier in the year toward ~65% during BTC’s rally, later dipped when capital rotated into altcoins, then settled in a ~59–61% range after October deleveraging. On-chain flows were mixed: mid-sized holders (100–1,000 BTC) accumulated roughly 54,000 BTC in one week — the fastest pace since 2012, taking their total to about 3.575 million BTC — while very large long-term holders (>10,000 BTC) trimmed exposure. Analysts note institutional inflows and BTC’s established reputation support continued capital preference for Bitcoin. For traders: monitor BTC dominance and on-chain flows as rotation signals; sustained stress likely pushes capital into BTC (supporting BTC relative performance), while renewed altcoin leadership would lower dominance and present higher-risk, higher-reward trade opportunities. Key trading actions: adjust position sizing, emphasize risk management, and watch for early rotation indicators in altcoin volume and dominance shifts.
Neutral
The news is neutral for Bitcoin’s price direction because it reports BTC outperformed other crypto sectors during a broad market decline rather than signalling a clear bullish or bearish catalyst. Short-term: BTC may show relative resilience during market stress as capital concentrates into it, which can support smaller downside versus altcoins and create tactical buy-the-dip opportunities. Traders might see reduced volatility relative to altcoins and use BTC as a defensive allocation. Long-term: accumulation by mid-sized holders and institutional interest suggest ongoing structural support, but range-bound dominance (≈59–65%) and reductions by very large holders mean no decisive trend change is confirmed. Key indicators to watch are BTC dominance, on-chain accumulation/distribution, and altcoin volume breakouts; these will determine whether capital remains in BTC or rotates back into altcoins. Overall impact: supports BTC’s relative safe-haven role but does not guarantee outright price appreciation.