{"id":360977,"date":"2025-08-21T02:41:10","date_gmt":"2025-08-21T02:41:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/360977\/"},"modified":"2025-08-21T02:41:10","modified_gmt":"2025-08-21T02:41:10","slug":"blue-chip-crypto-dominance-why-this-cycle-is-different-from-2021","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/360977\/","title":{"rendered":"Blue-chip crypto dominance: Why this cycle is different from 2021"},"content":{"rendered":"

\t\t\t\t\t\t\t\tKey Takeaways<\/strong><\/p>\n

Bitcoin and Ethereum lead the pullback, showing blue-chip crypto dominance even as $200 billion left the market. Altseason hype cooled as ETH\u2019s rise couldn\u2019t shift momentum beyond blue chips.<\/p>\n

This week, the crypto market shed billions, trimming its cap from $4 trillion to $3.8 trillion. That\u2019s around $200 billion in outflows.<\/p>\n

Bitcoin [BTC]<\/a> and Ethereum [ETH]<\/a> slipped below key levels, and their dominance retreated slightly. Naturally, this indicated capital rotated out of the ecosystem, sparking a \u201cmarket-led\u201d pullback.<\/p>\n

Reinforcing this, the altseason still hasn\u2019t kicked in. The index has slipped from its monthly high of 56 to 51. <\/p>\n

In fact, while it held above 50, we were far from a full-blown season. Having said that, maybe the \u201chype\u201d was outpacing reality this cycle.<\/p>\n

Blue-chip crypto gains mislead<\/b><\/p>\n

This cycle has been blue-chip crypto-led, with BTC and ETH driving most inflows. BTC blasted through four all-time highs this year, while ETH has yet to break one, though it came within 3% last week.<\/p>\n

Plus, ETH dominance ticked up to 14%, its highest since last November. However, its market cap<\/a> still trailed the 2021 $550 billion peak. BTC, meanwhile, scaled a record $2.4 trillion.<\/p>\n

Bottom line: ETH is still playing catch-up. <\/p>\n

The BTC\u2013ETH market cap gap has expanded to $1.865 trillion from $750 billion four years ago, implying BTC has outgrown ETH by 2.5\u00d7 this cycle.<\/p>\n

\"Btc<\/a><\/p>\n

Source: CoinMarketCap (Bitcoin market cap)<\/p>\n

This divergence suggested the market might be overreading the hype.<\/p>\n

Sure, Bitcoin dominance [BTC.D] slipped from 65% in mid-June to 59%, while Ethereum dominance [ETH.D] jumped from 9.5% to 14%, showing ETH\u2019s relative outperformance.<\/p>\n

Yet, we\u2019re still nowhere near a full-blown altseason<\/a>. <\/p>\n

The key takeaway? ETH.D strength alone didn\u2019t signal altseason. In fact, the market mistook ETH\u2019s relative gains for a broader rotation.<\/p>\n

Bitcoin remains the market\u2019s north star<\/b><\/p>\n

The crypto market has turned risk-off, and altcoins<\/a> are feeling the pinch.<\/p>\n

TOTAL2 (ex-BTC market cap) took a 4.56% hit this week, shedding over $100 billion, while Bitcoin dipped 3.1% to $2.27 trillion. In short, altcoins are underperforming BTC as traders rotate out and de-risk their positions.<\/p>\n

This backed AMBCrypto\u2019s view: altseason \u201chype\u201d is overstating the rotation. <\/p>\n

Capital is favoring BTC while altcoins lag. Backing this, ETH.D fell just 2%, signaling funds are rotating out of the rest of the alt space.<\/p>\n

\"Altcoins\"<\/a><\/p>\n

Source: Blockchaincenter<\/p>\n

The result? The altseason index has slid to 51 from last week\u2019s 56, marking its fourth failed breakout this year. Every prior attempt<\/a> stalled below 60 as capital rotated back into BTC.<\/p>\n

Looks like history might repeat.\u00a0<\/p>\n

Even with BTC.D dipping, Bitcoin\u2019s market share still outstrips any alt, keeping the spotlight on BTC. In short: Hype talks altseason, but the market is still running on Bitcoin rails.<\/p>\n

\t\t\t\t\t\t\t\t\t\t\tNext: Solana \u2013 Here\u2019s why Wall Street should pay attention to SOL now!<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways Bitcoin and Ethereum lead the pullback, showing blue-chip crypto dominance even as $200 billion left the…\n","protected":false},"author":2,"featured_media":360978,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-360977","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115064450897687328","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/360977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=360977"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/360977\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/360978"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=360977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=360977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=360977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}