Bitcoin BTC/USD has notably outperformed altcoins and meme coins over the recent weeks, according to a new report by on-chain data provider Nansen.
What Happened: In the market analysis published on Feb. 5, Nansen reports that previous week’s crypto liquidations tallying over $2 billion marks the largest wipeout in history.
Bitcoin recovered from an intraday low of $91,995 to over $102,591, showcasing its resilience, while Ethereum ETH/USD dropped 37% in the selloff and underperformed Solana SOL/USD.
Bitcoin dominance has climbed above 61%, reinforcing its status as the go-to asset during market crashes.
Nansen also highlighted other short-term market trends:
- Bitcoin remains range bound: Despite a strong bounce, the market isn’t in a clear uptrend yet. More sideways/downward action is likely.
- Altcoins are bleeding: ETH/BTC remains in a multi-year downtrend, and dispersion in the market creates opportunities for selective ALT/BTC pair trades.
- Macro factors at play: The S&P 500 remains relatively stable (-1%), suggesting broader optimism despite tariff concerns. However, if equities drop crypto could see further downside.
What’s Next: While the overall crypto market top may not be in yet, many altcoins have likely peaked, according to the report.
The best approach remains capital preservation and waiting for confirmed strength before re-entering.
Nansen suggests reducing exposure to meme coins and weaker altcoins, shifting funds into stablecoins.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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