Bitcoin’s market dominance is nearing four-year highs, yet the broader crypto market remains stagnant, with altcoins continuing to underperform. 

At the time of writing, BTC is priced at $95,490.76, marking a 2.95% decline over the past week and a 0.84% drop in the last 24 hours, according to CoinMarketCap. The Fear and Greed Index has also fallen into the fear zone, reflecting growing investor caution.

Bitcoin’s market dominance has surged to around 60%, signaling continued weakness in Ethereum and altcoins. 

According to QCP Capital, the situation was worsened by the recent “rug pull” scandal involving the $LIBRA token, which was allegedly linked to Argentine President Javier Milei. The controversy has cast further doubt on memecoins and similar speculative assets, leading to uncertainty around the possibility of an altcoin rally.

Despite Bitcoin’s dominance, the market remains in a tight trading range, with implied volatility (vols) drifting lower. 

The seven-day realized volatility for BTC has fallen to 36%, a level that traders typically associate with a lack of price movement. With no major crypto-specific catalysts in sight, BTC’s price action appears to be more macro-driven, particularly as its correlation with equities remains intact.

Bitcoin spot ETFs recorded a net outflow of $586 million last week (Feb. 10–14, EST), according to data from SoSo Value. 

While BlackRock’s IBIT saw $106 million in net inflows, Fidelity’s FBTC reported $282 million in net outflows, suggesting that some investors may be taking profits or reallocating funds. Ethereum spot ETFs were also hit by withdrawals, recording a net outflow of $26.26 million for the week. 

These outflows suggest that institutions are hesitant to make strong moves amid wider economic uncertainties, including inflation concerns, the U.S. debt ceiling, and ongoing geopolitical tensions.

Despite macroeconomic uncertainties—including potential tariffs, inflation pressures, and the unpredictability surrounding Trump’s influence on financial markets—crypto volatility remains low. 

The VIX (Wall Street’s “fear gauge”) and crypto implied vols are both trading near their lowest levels. This implies that the market is waiting for concrete policy changes rather than responding to pro-crypto rhetoric. Open interest (OI) in crypto options has not recovered significantly since the January month-end expiry, showing that many traders are sitting on the sidelines instead of taking aggressive positions.

With Bitcoin struggling to break out of its multi-month range, trading activity has leaned toward short-term volatility selling rather than positioning for a breakout. 

This pattern is reminiscent of Q2–Q3 of last year, when BTC was unable to gain momentum. While some traders are trying to capitalize on near-dated volatility, there is still uncertainty about whether it is worth paying for longer-term market exposure at current volatility levels. Unless a major catalyst emerges, BTC is likely to remain range-bound in the near term.

For now, Bitcoin remains in a holding pattern, with traders closely watching macroeconomic developments and institutional investment flows to gauge the next potential move.