2025-12-26 15:24:16

From 2024 to 2025, the crypto market is experiencing a clear structural differentiation. Since the approval of spot Bitcoin ETFs, a large influx of compliant funds has entered the market, but they are mainly absorbed by BTC, and the spillover effects to Ethereum and other altcoins have significantly weakened.

Data shows that the gap is quite substantial. BTC has gained approximately 90% over two years, remaining unrivaled. In contrast, narrative-driven sectors like Layer2 and GameFi have generally retraced more than 50%, and in some cases even deeper. Market funds are increasingly concentrated in the Bitcoin basket, while other sectors are undergoing growing pains.

What does this differentiation reflect? Institutional funds tend to prefer the most mature and mainstream assets. As the flagship of the crypto market, BTC has attracted the vast majority of incremental capital. Meanwhile, sectors that rely on narrative support are the first to face funding shortages, leading investors to become more cautious.

BTC-1,67%

ETH-1,39%

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ForkInTheRoad

· 12h ago

Bitcoin eats meat, altcoins drink soup, that's a bit too straightforward. This is how institutions are—they want stable things, but no one believes in innovative stories. Layer2s are really struggling now; no matter how good the narrative, they can't withstand the lack of funds. 90% gains versus 50% retracement, a significant gap. We still have to wait for this wave; the story of altcoins isn't finished yet. The crypto world is always about the strong getting stronger, the weak being preyed upon. If I had known earlier, I would have gone all-in on BTC; now I regret not doing so. So, is choosing the right track more important than choosing the right coin? It feels like this round, altcoins really can't make a breakthrough.

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0xTherapist

· 13h ago

Bitcoin is eating alone, while other coins are eating dirt. This is the current situation, no way around it. --- Honestly, Layer2 is a bit miserable right now, feeling like falling from high altitude... Institutions only recognize BTC, because we're just retail investors. --- It feels like the era of narrative coins is over; now it's all about BTC and ETH. --- Another "egg-eating" cycle, BTC fully reborn, altcoins at their lowest. --- What should ETH do? Are institutions planning to hold onto BTC and go to the moon? --- It seems we have to accept reality; mainstream funds prefer the steady feeling of Bitcoin. --- This altseason is truly nowhere in sight, sigh. --- Institutional entry has actually solidified the market, quite ironic. --- So now it's just holding coins and waiting for institutions to disperse their funds. Can't wait for that day. --- Layer2 has completely become a "narrative trap," everyone who’s been through it knows. --- All the money is in BTC, holding it makes it hard to get a share. --- It's truly a "Bitcoin moment"; everything else is just a supporting act.

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Degentleman

· 13h ago

Bitcoin vampires never get fully drained... Layer 2 is almost dead, and people are still talking about narratives.

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SpeakWithHatOn

· 13h ago

The Maillard effect in the crypto circle is so obvious now, with BTC dominating and other coins gathering dust. Institutions only care about money; Bitcoin is the most stable. No matter how good the stories of altcoins are, they can't withstand retracements. Layer 2 projects are indeed miserable. Once the narrative kings, they have now become mere accessories... Wait, do we have to wait for the next bull market to turn things around? Honestly, timing is too difficult. All in BTC and sleep peacefully.

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ForkTongue

· 13h ago

Bitcoin is monopolizing the market, altcoins are crying in the toilet—that's the current situation. --- Institutions only recognize BTC; everything else is gambling. It was obvious long ago. --- Layer 2 is in a tough spot now, really cut in half. Are there still people holding on? --- It's normal for funds to band together for warmth, but it feels like ETH should at least get some attention. --- The narrative-driven tracks were the first to die. I wasn't wrong about this wave. --- Wait, isn't this just a decline in risk appetite? Institutions are still scared. --- BTC has gained 90% in two years, my shitcoin lost 99% in two years—laughable. --- Who still expects altcoins to rebound? Just accept it. --- There's only one truth now: buying BTC is the right move; everything else is nonsense. --- This data is a bit harsh—I’ve lost a lot of my GameFi positions. --- Institutional funds are coming in, so let them come. Can ETH be lifted a bit? Don’t give all to BTC.

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GasOptimizer

· 13h ago

Institutions really only play the insurance game; the idea of BTC monopolizing the market has long become tiresome. Layer 2 projects are technically superior, but their narratives are weaker, which is why they are being hammered down...

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PensionDestroyer

· 13h ago

Institutions come in and start sucking the blood from BTC, while other coins are left to eat dirt. This is the reality, haha. --- To put it simply, BTC is still the most resilient; other narrative coins should have cooled off long ago. --- Layer 2 and GameFi investors have been extremely desperate over the past two years... a 50% decline is truly outrageous. --- All the money has been sucked into the Bitcoin black hole; the spring for altcoins is probably far off. --- Regulated funds = only playing mainstream, as expected, institutions are just so boring. --- Thinking back to those L2 believers last year, they’re probably all silent now, haha. --- This wave of differentiation was actually obvious early on; who still expects altcoins to make a comeback? --- So should we go all-in on BTC now? Everything else is just a gamble. --- No wonder retail funds are scrambling for chips; only BTC is trustworthy. --- It feels like the crypto world is splitting into two camps: BTC vs everything else.

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wagmi_eventually

· 13h ago

The crypto world is like this: when institutions enter the market, it's all about BTC, and we small retail investors can't get anything. Altcoins dropping 50% is considered mild; my holdings have already been cut in half. So now it's all about who can hold on until the next narrative wave? I can understand institutions clustering around BTC, but if this continues, other chains really won't have a chance. Layer2 projects are truly being neglected; I should have just gone all in on Bitcoin this year. The key is that ordinary people can't compete with institutions—when they have money, they do whatever they want. I heard some people are still sleepwalking and buying all kinds of meme coins; I really can't take it anymore. This round of divergence is really heartbreaking; it feels like the cycle has shortened.

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