Bitcoin dominance surges post FTX collapse, indicating market sentiment shifts
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Glassnode data indicated that Bitcoin’s dominance increased after the FTX collapse in 2022. The analytics firm highlighted that more investors chose Bitcoin as an investment tool over other digital assets. According to Glassnode, a Blockchain analytics firm, Bitcoin’s dominance has surged in the past three years. The firm noted more capital rotation into Bitcoin than other digital assets, such as altcoins. Bitcoin dominance surpasses altcoins despite correlation Glassnode data revealed Bitcoin dominance surged from 38% to 58% since FTX’s collapse in late 2022. According to the analytics firm, since the 2022 low, Bitcoin’s market cap has grown 5.3x from $363 billion to $1.9 trillion. Glassnode noted the surge outpaced altcoins, whose market cap increased by 4.7x to $892 billion. Bitcoin dominance has surged from 38% to 59% since the FTX collapse, reflecting a net capital rotation into BTC over other digital assets: https://t.co/I1rZLhGP9n pic.twitter.com/00WQ6Tboa8 — glassnode (@glassnode) February 7, 2025 Glassnode noted that despite the divergence, BTC and altcoins remained highly correlated. The firm suggested that the key drivers of the market caps may not be the growth rate differences but more substantial relative inflows into BTC. The firm suggested that a reversal in BTC dominance could signal capital rotation back into altcoins, which could trigger an alt season. Onchain data revealed that the BTC cycle in December 2024 remained more stable than previous ones. The data showed that realized losses during market pullbacks remained minor, and volatility in the bull market remained lower. The cycle is reportedly attributed to a more knowledgeable investor base, especially among retail holders who now accumulate during market corrections rather than panic selling at the top. In an earlier report, Glassnode revealed that Bitcoin had become a store of value and a medium of exchange. The firm noted that BTC’s net capital inflow exceeded…
Filed under: News - @ February 7, 2025 2:24 pm