Crypto traders seek shelter in bitcoin as altcoins slide and ETF flows wobble
Your day-ahead look for Oct. 21, 2026
Crypto traders are seeking safety in Bitcoin as alternative coins struggle amid wobbly flows into exchange-traded funds (ETFs). Bitcoin's share of the entire crypto market has surged to the highest level since May, reaching a dominance rate of 60% on Wednesday and remaining close to that level. This shift indicates a growing inclination towards BTC, as investors lean towards the leading cryptocurrency over other digital assets.
The increase in dominance is observed despite minor price fluctuations. Bitcoin dropped below $82,000 on Thursday, reversing a brief surge above $84,000 earlier in the week. On a seven-day basis, Bitcoin and most major tokens, such as Ether, Ripple, and Solana, have remained relatively stable or experienced minor gains, with only Zcash showing a noteworthy increase of over 10%.
Conversely, smaller tokens have witnessed more substantial declines. The CoinDesk Memecoin Index dropped over 5%, while the CoinDesk Computing Select Index fell by 3.5% and the DeFi Select Index lost 2.5%.
Experts suggest that the market is eagerly anticipating a new catalyst. Joel Kruger, a market strategist at LMAX Group, stated that the previous period of crypto outperformance has shifted to a closer alignment with equities, and investors are waiting for a fresh catalyst within the sector. Kruger also noted that the global macroeconomic situation remains the primary driver, and Bitcoin's scarcity might help it withstand potential jitters in global equity markets.
Vikram Subburaj, CEO of India-based Giottus exchange, cautioned against following Bitcoin rallies, emphasizing that exchange-traded funds (ETFs) still lack a consistent demand. "Flows remain volatile, and sustained inflows are necessary to confirm a stronger recovery," he said in an email. "Our advice: Investors should refrain from chasing short-term rallies. Consider staggered entries, maintain measured position sizes, and monitor ETF flows and Federal Reserve signals before increasing exposure."
The Federal Reserve is scheduled to meet on interest-rate policy in the coming week, so traders should stay alert for potential market impacts.
Written by urgent.news from CoinDesk's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
