Bitcoin's share of the total cryptocurrency market value has risen to 60%, the highest level since May, even as prices across the broader market weaken. The dominance rate reached that threshold on Wednesday and remains near it, indicating a renewed preference for bitcoin over alternative coins.
The shift comes amid muted price action. Bitcoin slipped below $82,000 on Thursday, reversing a brief push above $84,000 on Wednesday. Over a seven-day period, bitcoin and most other major tokens—including ether, XRP, and solana—were largely little changed to positive, with zcash the only major coin to advance more than 10%.
Smaller tokens have seen bigger declines. The CoinDesk Memecoin Index fell more than 5%, while the CoinDesk Computing Select Index dropped 3.5% and the DeFi Select Index lost 2.5%.
Analysts Await Fresh Catalyst
Analysts say the market is waiting for a new catalyst. "The earlier period of crypto outperformance has given way to closer alignment with equities as investors wait for a fresh catalyst within the sector," Joel Kruger, a market strategist at LMAX Group, said in an email.
Kruger added that the global macroeconomic situation remains the dominant influence, and 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, noting that exchange-traded funds still lack a consistent bid. "Flows remain volatile, and sustained inflows are needed to confirm a stronger recovery," he said in an email. "Our advice: Investors should avoid chasing short-term rallies. Consider staggered entries, maintain measured position sizes and monitor ETF flows and Fed signals before increasing exposure."
The Federal Reserve is set to meet on interest-rate policy next week.
Market Moves and Trends
Asian stocks tumbled and bitcoin retreated as China entered a bear market, with equities slumping as technology shares sank and rising oil prices compounded investor concerns. Chinese prosecutors moved to seize more than 61,800 bitcoin linked to a fraud case worth roughly $5.7 billion, days after a U.K. court ruled Chinese law governs victims' claims to the coins.
The yen headed for its strongest daily rally in a month, drawing safe-haven flows from investors fretting over fragile equity markets, high crude prices, war in the Middle East, and potential disappointment in future returns from AI. Norway's sovereign wealth fund said its investment portfolio lost $30 billion in the third quarter as rising interest rates dented returns on its bond holdings.
Technical Signal
XRP is trading below the Ichimoku cloud on its daily chart, a sign of building bearish momentum. Crossovers above and below the cloud are said to represent bullish and bearish trend reversals. The chart indicates that if prices hold below the cloud, further losses may follow.
