Bitcoin's Decline Reveals the True Face of the Crypto Market

The Impact of Bitcoin Continues

Despite the existence of hundreds of alternative tokens and institutional adoption, the crypto markets in 2026 are still largely in sync with the rhythm of Bitcoin. This situation does not truly offer a diversification opportunity.

Defensive Sector-Like Tokens Also Declining

Income-producing decentralized finance (DeFi) and protocol tokens have significantly declined alongside Bitcoin, similar to traditional defensive sectors. Hyperliquid's HYPE token stands out as a rare success story amidst the broader declines.

Concentration in the Crypto Market

The dominance of Bitcoin, the rise of stablecoins as a defensive allocation, and the increasing institutional interest through spot exchange-traded funds (ETFs) indicate that the crypto market will continue to concentrate around Bitcoin. This situation limits the possibility of a meaningful divergence.