Bitcoin has gained 28% over the past two years while the median mid-cap altcoin lost 74%, according to a new Glassnode and Bybit report. Ethereum landed roughly sideways over the same stretch, reversing the "altseason" pattern many holders expected.
Over the past two years, Bitcoin gained 28% while the median mid-cap altcoin lost 74%, according to a new report from analytics firm Glassnode and crypto exchange Bybit. Ethereum, the second-largest cryptocurrency, landed roughly sideways over the stretch.
The report frames the divergence as this cycle's defining feature: Bitcoin compounding higher while the mid-cap complex retreats. According to Glassnode and Bybit: "halves and halves again". That reverses the pattern many holders came to expect, in which capital rotates from Bitcoin down into smaller tokens as a rally matures.
Leverage pools in the riskiest coins
That concentration shows up in how leverage is distributed, too. Bitcoin carries futures open interest worth about 2% of its market capitalization, the report found. Speculative small caps carry far more, with PEPE near 24%. The froth has pooled in the market's riskiest corners even as Bitcoin has done the heavy lifting on price.
The usual caveats apply. The report is a Glassnode and Bybit collaboration, with data as of the settled close of August 23, and Glassnode's venue coverage is limited, so the figures describe the venues it tracks rather than the entire market.
Bitcoin's rebound lifts the broader market
Bitcoin surged back above $80,000 days ago after a dovish Federal Reserve forecast, and the rebound dragged the broader market with it. The total crypto market capitalization rose 4.6% in a day to about $2.85 trillion.
Several majors outran Bitcoin in the bounce. Solana rose roughly 10% on the day, while NEAR and Uniswap posted far larger gains, hinting at breadth that had been missing for a year.
Institutional demand still tilts toward Bitcoin
Spot Bitcoin ETFs have pulled in about $55.2 billion in cumulative net inflows. That dwarfs the roughly $13.1 billion into Ethereum funds, which recently logged a multi-day outflow streak. Solana's spot ETFs, newer and smaller, have drawn about $29.7 million.
Source: Decrypt
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