Bitcoin [BTC] is now below recent highs, but it is far from boring.
Market dominance has increased again and investors are still leaning on Bitcoin in uncertain times. Morgan Stanley’s recent ETF purchase also contributed to this trend.
Bitcoin’s dominance rises, price takes a hit
By mid-2025, Bitcoin was trading close to its peak, but its dominance waned. At the time, traders were still willing to take more risk in altcoins.
In 2026, things Look yet different. Bitcoin’s price has fallen from its local highs, and its dominance has risen again. This tells us that investors are retreating from riskier parts of the market and staying closer to Bitcoin.
In weak markets, capital often moves to assets that are considered the most liquid and reliable. Bitcoin does not always need a price increase to lead the way. Sometimes all it takes is for everything else to fall harder.
The preference for BTC…
…is also reflected in the activity of major players. Basically data from Arkham showed Morgan Stanley held more than $270 million worth of Bitcoin, and the recent inflows came at a time when other ETF-linked players were selling.
This proves the original statement.
Morgan Stanley’s purchase reinforces the idea that large institutions still view Bitcoin as the most important asset they can hold when risk appetite is low.
Simply put, even in a weak market, Bitcoin continues to command most of the attention.
However, it should be noted that at the time of writing, Bitcoin made up more than half of the supply was held at a loss. This has only happened at major market bottoms, but usually after another painful decline.
Bitcoin needs price confirmation around $64,000
While the bigger story may be constructive, the price chart has not yet provided a clear answer. At the time of writing, Bitcoin was trying to stabilize near the $63,000 zone after falling. While the RSI started to recover from the oversold levels.
However, the pace seemed weak. The DMI showed that sellers have not yet completely lost control, even though the pressure has decreased. For Bitcoin to build a stronger case, it must regain and hold nearby resistance.
Final summary
- Bitcoin’s dominance has increased even when BTC was worth almost $63,000.
- Morgan Stanley’s Bitcoin exposure and 50% underwater supply mean BTC may be in a high-pressure zone.