Why Holding Anything But Bitcoin Has Been a Losing Bet for Two Years

What happened

A Glassnode and Bybit report says that for the past two years, holding anything other than Bitcoin has been a losing bet. The report describes this as a defining feature of the current cycle, with risk concentrated in the market's riskiest areas.

Confirmed

Global impact / market context

This means investors who put money into other digital assets likely lost value compared to Bitcoin holders. It suggests Bitcoin has been the main driver of gains, while riskier investments have not paid off, shaping where investors choose to put their money.

Analyst inference

The report points to froth, which means excessive speculation, pooling in the riskiest parts of the digital asset market. This could mean those areas face higher chances of sharp price drops, while Bitcoin's strength may continue attracting investor attention and capital.

Analyst inference

What to watch

1. Watch for further reports from Glassnode and Bybit that may update or confirm this two-year trend of Bitcoin outperforming other digital assets, as the current report defines it as a cycle feature. Confirmed
2. Investors might consider whether their portfolio relies too heavily on holding assets other than Bitcoin, given the reported two-year losing bet, and evaluate their risk tolerance accordingly. Proposed
3. If froth, which means speculative excess, in riskier corners unwinds, expect those assets to face downward pressure while Bitcoin might remain relatively stable, potentially reinforcing the trend described in the report. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• decrypt.co