Traders Seek Safety in Bitcoin, Ether as Altcoins Falter

Bitcoin and ether have become the crypto market’s defensive anchors because their liquidity and institutional use extend beyond directional speculation. Bitcoin now sits inside exchange-traded funds, basis trades, hedging strategies and collateral systems, creating demand even without a sharp rally. Most altcoins lack comparable capital-markets infrastructure or clear mechanisms for accruing value to token holders. Zaheer Ebtikar, chief strategy officer at crypto neobank Plasma, said that leaves smaller tokens dependent on aggressive bitcoin momentum and vulnerable when risk appetite fades.

On Aug. 6, CoinDesk reported bitcoin gained about 0.9% in 24 hours to $64,700, versus a 0.16% rise for the CoinDesk 20; bitcoin and ether were the index’s only gainers. Altcoin open interest fell about 15% over the past month while bitcoin rose roughly 8%. Bitcoin futures open interest reached 770,000 BTC and long positions accounted for nearly 52% of taker volume. Deribit activity also shifted toward bullish calls at $80,000 and $96,000, though repeated reversals in open interest kept the signal cautiously optimistic rather than decisive.