On October 26, 2017, the cryptocurrency market sent a clear signal: Bitcoin was decoupling from the rest of the pack. While the dominant cryptocurrency consolidated above $5,900 after breaking the $6,000 barrier just days earlier, Ethereum and most alternative coins struggled to keep pace. Bloomberg reported that the Bletchley Ethereum Token Index had fallen 16% over the previous month, underscoring a growing divergence between Bitcoin and the broader altcoin market.
The dynamic was striking. Bitcoin’s market capitalization stood at $98.3 billion, representing approximately 56% of the total cryptocurrency market. The total crypto market cap had reached roughly $176 billion on this date, with Bitcoin alone accounting for more than half of all value. For traders and analysts watching the space, the trend was unmistakable: capital was flowing disproportionately into Bitcoin at the expense of altcoins.
TL;DR
- Bitcoin traded at $5,904 on October 26, 2017, with a market cap of $98.3 billion
- Ethereum held at $296 with a $28.3 billion market cap, but the Bletchley Ethereum Token Index was down 16% over the month
- Bitcoin Cash traded at $338, XRP at $0.20, and Litecoin at $55.74 — all lagging Bitcoin’s momentum
- Total cryptocurrency market cap reached approximately $176 billion, up 23.52% in October alone
- Bitcoin’s dominance was growing as the SegWit2x debate and institutional interest focused attention on BTC
The Numbers Tell the Story
A look at the CoinMarketCap snapshot from October 26 reveals the extent of Bitcoin’s outperformance. BTC was up 3.19% over 24 hours and 3.65% over the week, trading at $5,904.83 with 24-hour volume of $1.9 billion — a staggering figure for a market still in its relative infancy. By contrast, Ethereum was down 0.44% over 24 hours and 3.85% over the week, with 24-hour volume of $270 million.
The pattern extended across the top altcoins. XRP was down 0.41% over 24 hours and 6.38% over the week at $0.2036. Litecoin had lost 0.52% daily and 6.81% weekly, trading at $55.74. Even Bitcoin Cash, which had been one of the stronger performers since its August fork, was only managing a modest 1.80% daily gain at $338.20.
October’s Bitcoin Surge in Context
The broader October picture was even more dramatic. According to monthly analysis, Bitcoin’s market capitalization grew from $72.05 billion at the start of October to $107.29 billion by month’s end — a gain of nearly 49% in a single month. Total cryptocurrency market capitalization increased by 23.52%, from $147.87 billion to $182.65 billion. But here was the key detail: Bitcoin accounted for the vast majority of that growth. Ethereum gained just 1.4% in October, and Litecoin a mere 1.09%.
This divergence reflected a fundamental shift in market dynamics. For much of 2017, the crypto bull run had lifted most boats, with altcoins often outperforming Bitcoin during periods of euphoria. But by late October, the narrative was changing. Institutional capital — still relatively nascent in the crypto space — was gravitating almost exclusively toward Bitcoin.
The SegWit2x Factor
The looming SegWit2x hard fork, scheduled for mid-November, was creating additional market turbulence. The contentious upgrade proposal had divided the Bitcoin community, with some prominent figures supporting the 2MB block size increase and others vehemently opposing it. Roger Ver, one of Bitcoin’s earliest and most vocal investors, had placed a $4 million bet that coins on the SegWit2x chain would ultimately be worth more than the original Bitcoin blockchain.
Bitcoin.org had issued a safety alert warning users about potential wallet incompatibilities. The uncertainty was paradoxically driving more capital into Bitcoin, as traders positioned themselves to receive coins on both sides of any potential fork — a phenomenon some analysts dubbed the dividend play, where Bitcoin holders would receive new tokens simply for holding BTC through the fork.
Altcoin Projects Under Pressure
The underperformance of altcoins was particularly notable given the broader enthusiasm for blockchain technology. Microsoft had just released an educational video on October 26 positioning blockchain as the next frontier for digital transformation, and mainstream awareness of the technology was at an all-time high. Yet this attention was translating primarily into Bitcoin buying, not altcoin investment.
The ICO market, while still active, was beginning to show signs of strain. Many projects that had raised significant funds through Ethereum-based token sales were seeing their tokens decline in value, creating negative sentiment around the broader altcoin space. The Bletchley Ethereum Token Index’s 16% monthly decline reflected this growing caution among investors who had initially been drawn to the space by the promise of outsized returns.
Market Structure and Volume Patterns
Bitcoin’s 24-hour trading volume of $1.9 billion dwarfed every other cryptocurrency. Ethereum, the second-most-traded asset, managed $270 million. This liquidity advantage made Bitcoin the default entry point for new capital entering the crypto market, reinforcing its dominant position. The stablecoin Tether, trading at $0.999 with $162 million in daily volume, served as the primary off-ramp for traders moving between fiat and crypto, further concentrating activity around the BTC/USDT pair.
The top 10 cryptocurrencies by market cap painted a picture of consolidation around Bitcoin. Behind BTC and ETH, XRP held a $7.8 billion market cap, Bitcoin Cash sat at $5.6 billion, and Litecoin rounded out the top 5 at $2.98 billion. Dash, NEM, the since-exposed BitConnect, Neo, and Monero completed the top 10 — a mix that would look dramatically different just months later.
Why This Matters
The divergence between Bitcoin and altcoins in late October 2017 was a preview of a pattern that would repeat throughout crypto market cycles. When uncertainty rises and institutional capital flows in, Bitcoin tends to absorb the lion’s share of new investment, leaving altcoins to play catch-up later. The SegWit2x episode demonstrated how Bitcoin’s governance crises, rather than undermining confidence, often end up strengthening its market position as holders accumulate ahead of potential forks. The $5,900 Bitcoin of October 2017 was just weeks away from its historic run to nearly $20,000 — a rally that would temporarily pull many altcoins along before the entire market crashed in early 2018.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.
56% dominance at $176B total market. BTC just eating everything in sight pre-CME launch
Bletchley index down 16% while BTC pumped. alt season was not coming yet, no matter how much twitter wanted it
capital flowing into BTC because of segwit2x uncertainty. once that got cancelled alt season finally arrived
XRP at $0.20 and LTC at $55. feels like looking at another planet compared to now