Bitcoin's share of the crypto market has reached its highest level since May, while smaller tokens post bigger declines. Analysts say the market is waiting for a fresh catalyst, and one exchange CEO warns that ETF flows remain volatile.
Bitcoin's share of the crypto market climbed to its highest level since May, even as prices across the wider market weaken. Its dominance rate, the contribution of BTC to the total market value of digital assets, reached 60% on Wednesday and remains near that level.
The move signals a renewed preference for BTC, with investors favoring the largest cryptocurrency over alternative coins, according to CoinDesk. Smaller tokens, however, have seen bigger declines: the CoinDesk Memecoin Index fell more than 5%, the CoinDesk Computing Select Index dropped 3.5% and the DeFi Select Index lost 2.5%.
Price action for bitcoin itself was muted. It slipped below $82,000 on Thursday, reversing Wednesday's brief push above $84,000.
On a seven-day basis, BTC and most other major tokens, including ether, XRP and solana, were largely little changed to positive. Zcash was the only major coin to advance more than 10%.
Analysts wait for a catalyst
Joel Kruger, a market strategist at LMAX Group, said in an email: "The earlier period of crypto outperformance has given way to closer alignment with equities" as investors wait for a fresh catalyst within the sector. Kruger added that the global macroeconomic situation remains the dominant influence, and that bitcoin's scarcity could help it sustain potential jitters in global equity markets.
Vikram Subburaj, CEO of India-based Giottus exchange, cautioned against chasing bitcoin rallies, pointing out that exchange-traded funds still lack a consistent bid. He said flows remain volatile and sustained inflows are needed to confirm a stronger recovery, and advised investors to monitor ETF flows and Fed signals before increasing exposure.
The Federal Reserve is set to meet on interest-rate policy next week.
Source: CoinDesk
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