Bitcoin's dominance climbs while its price naps 🛏️

Bitcoin's market dominance has risen again even as $BTC trades well below its recent highs, with on-chain and flow data pointing to investors pulling back toward the asset seen as the most liquid in the crypto market. In mid-2025, $BTC was trading close to its highs while dominance was falling and capital rotated into altcoins; in 2026, the pattern has reversed, with price off local highs and dominance moving back up as risk appetite has cooled. Bitcoin held a market-cap share above 46% at writing, and on-chain analytics platform Arkham showed Morgan Stanley holding over $270 million in $BTC, with recent inflows arriving as other ETF-linked players were selling. The flows add weight to the view that large institutions continue to treat Bitcoin as the primary asset to hold when risk appetite is low, even in a weak tape. On supply, more than half of Bitcoin's circulating supply was held at a loss at press time, a level that has historically appeared only near major market bottoms, typically after one further decline. On the chart, $BTC was stabilizing near the $63,000 zone after a drawdown, with the RSI recovering from oversold territory; the DMI showed sellers easing but not yet fully ceding control. For a stronger case to build, Bitcoin needs to reclaim nearby resistance and hold it.