Bitcoin is still trending up on strong exchange-traded fund (ETF) demand <\/a>and low exchange reserves, but its dominance is slipping as altcoins rally and regulations evolve, crypto bank Sygnum said in a new Q3 report<\/a>.<\/p>\n Bitcoin (BTC)<\/a> ETF assets have now surpassed $160 billion, with more than 110,000 BTC added last quarter alone, the report notes. At the same time, exchange reserves have dropped to a near seven-year low, tightening available supply. According to CryptoQuant data<\/a>, BTC reserves across exchanges currently sit at around 2.37 million coins.<\/p>\n Earlier this year, Bitcoin surpassed Google to become the sixth-largest asset globally by market capitalization, \u201cfurther cementing its status as a credible macro asset in global markets,\u201d the report reads. BTC is currently trading at around $117,000 with a market cap of $2.3 trillion, according to CoinGecko.<\/p>\n Bitcoin\u2019s dominance also recently hit its highest level since early 2021 \u2013 but that trend has reversed, with its share of the market falling more than 6% amid a broader altcoin rally, led by large-caps like ETH, XRP and BNB. Currently, BTC dominance hovers around 61%, according to TradingView data<\/a>. Moreover, with regulatory clarity expected to further boost the altcoin space, Bitcoin\u2019s dominance could continue to slide, the report said. <\/p>\n These findings point to a shift in the crypto market, with Bitcoin still leading but interest spreading to other coins as investors seek to capitalize on opportunities beyond just BTC.<\/p>\n Most recently, the total cryptocurrency market cap crossed the $4 trillion mark for the first time, led by surging valuations of altcoins such as Ethereum (ETH) and Ripple (XRP). ETH traded as high as $3,864 over the weekend \u2013 its highest level since December 2024. It has since retraced to $3,767. <\/p>\n The report notes that sentiment around Ethereum has recently shifted partly because of its successful Pectra upgrade, which raised the staking cap from 32 to 2048 ETH and implemented several core improvement proposals (EIPs). <\/p>\n \u201cEthereum\u2019s tailwinds have also led to exchange reserves returning to cycle lows, with market data revealing large whale accounts accumulating Ether and a steady rise in on-chain transactions and active users,\u201d the report added. \u201cIf these demand trends pick up in the coming quarter, we cannot rule out the possibility of a supply squeeze and an upward price shock.\u201d<\/p>\n Meanwhile, XRP last week reached an all-time high of $3.64. Currently, the token is trading at $3.11, down 12% over the past week. <\/p>\n \u201cAs regulatory clarity extends to altcoins, capital could rotate towards projects with real economic use cases and sustainable token models, and perhaps this shift is already underway as some sectors currently show,\u201d Sygnum\u2019s report reads. <\/p>\n![\"BTC](\"https:\/\/thedefiant.io\/_next\/image?url=https%3A%2F%2Fcdn.thedefiant.io%2Fad_4nxe3n6vovppnjipctycfpijl-3_0w5vkomqyui3cexspyfbmw9f66tyk-dd0c788a-ba30-44d5-9f47-d0295670de91.png&w=3840&q=100\"\/)