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

Bitcoin has outperformed every other cryptocurrency for the past two years, a trend highlighted in a new Glassnode and Bybit report that says holding anything but Bitcoin has been a losing bet. The data covers the period from early 2022 to now and shows Bitcoin delivering strong returns while altcoins have lagged behind.

The divergence matters because it signals a shift in how investors view risk in the crypto market. After the 2022 crash, many traders fled to Bitcoin as a perceived safe haven. At the same time, higher interest rates and a slowdown in tech spending reduced appetite for speculative assets. Bitcoin’s role as a store of value and its larger liquidity made it the default choice for both retail and institutional players. Altcoins, which rely more on hype and new project launches, struggled to attract capital in this tighter environment.

According to the report, Bitcoin has risen roughly 150% since the start of 2022, while the broader crypto index is down about 30%. On‑chain data shows new Bitcoin addresses growing at a faster rate than those for other tokens. Bybit’s exchange figures reveal that inflows into Bitcoin futures have consistently outpaced those into altcoin contracts. Meanwhile, money has been funneled into the market’s riskiest corners – meme coins, low‑market‑cap tokens and leveraged products – creating a frothy bubble that sits apart from Bitcoin’s steadier climb.

Analysts say the next phase will depend on whether Bitcoin can maintain its momentum. If it steadies, some investors may start looking again at altcoins for higher returns, especially if regulatory clarity improves. However, the report warns that the current “froth” could burst if market sentiment turns sharply, leaving altcoins vulnerable. For now, most fund managers are keeping the bulk of their crypto exposure in Bitcoin, treating other tokens as speculative bets rather than core holdings.