Bitcoin and Ethereum Maintain Stability as Risk Eases and Stablecoins Surge
June 29, 2025 – By Denis Omelchenko, Edited by Anthony Patrick
As the cryptocurrency market experiences shifting risk sentiments, Bitcoin (BTC) and Ethereum (ETH) continue to hold steady, while stablecoins swell to nearly 30% of portfolio allocations during market sell-offs. Data from Finestel, a crypto trading and portfolio-management platform, reveals key trends in asset manager behavior in response to varying market conditions.
Core Cryptocurrencies Anchor Portfolios Amid Market Fluctuations
Finestel’s analysis, based on trading activity across major exchanges including Binance, Bybit, KuCoin, OKX, and Gate.io, shows that top asset managers consistently maintain a significant weighting in Bitcoin and Ethereum. The two leading assets typically make up around 50-57% of holdings during bullish phases and sideways markets, demonstrating their role as the "risk-managed baseline" in crypto portfolios.
For example, in January 2025, amid Bitcoin’s rally toward $73,000 and Ethereum’s price surge following the Pectra upgrade, combined BTC and ETH holdings in portfolios reached 57%. Concurrently, allocation to layer-1 tokens such as Solana (SOL) and Avalanche (AVAX) rose to 21%, while stablecoins declined to 14%, signaling increased risk appetite.
Stablecoins Grow as Protective Liquidity During Sell-Offs
When markets turned bearish in February, stablecoins—primarily Tether (USDT) and USD Coin (USDC)—nearly doubled their share in portfolios to almost 30%. During this period, Bitcoin and Ethereum allocations decreased to about 47%, down by 10% from January. Meanwhile, exposure to higher-risk DeFi assets dropped from 8% to 5%, and layer-1 tokens eased slightly to around 20.5%.
This shift indicates that asset managers increased stablecoin holdings as a form of liquidity and downside protection, ready to deploy funds when market conditions improve. This strategically positioned “dry powder” allows managers to mitigate losses while preserving capital for buying opportunities.
Balanced Positioning During Sideways Markets
Throughout the months of March, April, and June, portfolio allocations became more balanced. In March, Bitcoin and Ethereum holdings stayed at 50%, stablecoins were at 24.5%, and DeFi and layer-1 token allocations hovered around 5% and 21.5%, respectively. This mix reflects measured risk exposure with an increased focus on yield strategies as volatility subsided.
April saw a mild shift back toward risk-taking with BTC and ETH allocations rising to 52%, layer-1 tokens climbing to 23%, and DeFi increasing to 6%. Stablecoins decreased to 19%, illustrating a blend of momentum trading and income generation strategies. After a slight sell-off in June, manager portfolios reverted to the March structure, underscoring ongoing caution despite positive market trends.
Consistent Themes Across Market Cycles
Finestel’s report highlights three consistent themes in asset allocation behavior:
- Core Consistency: Bitcoin and Ethereum consistently constitute about half of managers’ portfolios, anchoring them through market volatility.
- Dynamic Dry Powder: Stablecoins fluctuate between 14% and 30%, providing liquidity flexibility for tactical buying or hedging.
- Selective Growth: Investments in DeFi and layer-1 tokens expand during bullish or cooling markets to capture yield or alpha, then contract amid risk-off conditions.
While these trends shed light on institutional strategies, the report cautions that allocations vary widely depending on managers’ objectives and market views. Factors such as rebalancing frequency and fee structures also influence portfolio decisions, making this data a guide rather than a direct investment playbook for the average investor.
Additional Insights from Bybit Research
Supporting Finestel’s findings, a recent report from exchange Bybit shows Bitcoin’s share of total crypto holdings increasing to nearly 31% in 2025 from roughly 25% in late 2024. This growth reflects the cryptocurrency’s enduring appeal among both retail and institutional investors.
Interestingly, XRP has quietly overtaken Solana to become the third-largest non-stablecoin holding, as Solana’s share decreased by nearly one-third since fall 2024. Institutional investors continue to favor Bitcoin strongly, with about 40% of their digital assets in BTC, compared to about 12% for retail buyers. This contrast underscores Bitcoin’s dual role as a popular retail asset and a macro hedge for institutions.
Market Snapshot (As of June 29, 2025)
- Bitcoin (BTC): $107,571 (0.10% 24h change, 6% 7d change)
- Ethereum (ETH): $2,470.91 (1.44% 24h change)
- BNB (BNB): $657.39 (1.36% 24h change)
- Solana (SOL): $156.88 (4.45% 24h change)
- XRP (XRP): $2.20 (0.74% 24h change)
As the crypto market continues navigating volatility and evolving investor sentiment, Bitcoin and Ethereum retain their central role, providing stability amid phases of risk-on and risk-off posturing. Meanwhile, stablecoins’ surge in portfolios during down markets reflects a collective emphasis on liquidity and risk management among asset managers.
For ongoing coverage and insights into cryptocurrency market trends, stay tuned to crypto.news.