Is Altcoin Season on Pause? Capital Shifts Toward Bitcoin and Ethereum

Jakarta, Pintu News – Bitcoin (BTC) briefly broke back through the $92,000 level after facing $2 billion in liquidations, as traders and investors increasingly focus on major cryptocurrencies. The dominance of BTC and ETH remains high, reflecting the market’s tendency to favor established digital assets amid economic uncertainty.

The current state of the crypto market shows consolidation, characterized by declining base rates and open interest. This has encouraged both institutional and retail investors to shift their funds to more reliable assets, with little interest in the use of leverage.

Market Focus Shifts to Bitcoin and Ethereum

Crypto traders are now starting to turn to mainstream assets. Bitcoin’s dominance is steady at 59.11% of the total crypto market capitalization for the top 125 assets. Meanwhile, Ethereum’s (ETH) dominance stands at 12.80%, moving slightly in a narrow range between 12.78% to 12.81%.

Read also: Bitcoin Price Weakens to $90,000 Today: Can BTC Break $100,000 Level?

In Wintermute’s latest market update, this shift reflects a broader trend: market participants tend to favor selective risk-taking over broad exposure to the market (broad beta).

The trading firm noted a rare simultaneous flow of funds into BTC and ETH from both retail and institutional investors. This indicates that asset quality is a top priority amidst the weakening momentum of the Nasdaq.

Bitcoin’s sharp $4,000 intraday price drop last Friday revealed the fragility of the current recovery process. The drop was triggered by a chain liquidation that surpassed $2 billion in just about an hour.

However, the market was able to absorb the pressure without further selling, indicating a consolidation phase rather than signs of capitulation.

Central bank decisions will determine the next market direction

With the crypto market currently moving in a flat pattern, investors’ attention is now on upcoming central bank decisions. The Federal Reserve’s interest rate decision on Wednesday and the Bank of Japan meeting next week are expected to influence global interest rate differentials and cross-asset volatility towards the end of the year.

Read also: Ethereum Price Drops $3,100 Again Today: ETH Bullish Crossover Starting to Form?

Wintermute notes that high implied volatility at the end of the year indicates a divided market. Traders are predicting Bitcoin price movement to $85,000 or $100,000 by the end of December. Barring any major macroeconomic surprises, the crypto market is likely to remain range-bound.

Delta-neutral and carry-trade strategies are beginning to dominate, especially outside of mainstream assets, signaling that the market is more focused on capital efficiency while waiting for clearer signals. Interest is now shifting to small-cap assets that still offer attractive funding, suggesting a low appetite for directional risk in altcoins.

“The market is currently consolidating with no clear direction, and macro events will determine the next move,” Wintermute wrote in its report. For the time being, traders would rather secure yields than speculate on a potential breakout.

This suggests that altcoin season may still be a long way off. With capital continuing to flow into BTC and ETH, rather than out of them, traders tend to avoid directional bets on altcoins. They prefer a neutral strategy, while conditions for a broad altcoin rally are yet to take shape.

Triggering a sustained alt-season requires macroeconomic certainty, BTC price stability above key resistance levels, as well as a return of risk appetite-which for now is nowhere in sight.

FAQ

What is Bitcoin’s (BTC) current level of dominance in the crypto market?

Bitcoin’s (BTC) current dominance is 59.11% of the total crypto market capitalization among the top 125 cryptos.

What is Ethereum (ETH) dominance and how much is it?

Ethereum (ETH) dominance is a measure of the portion of Ethereum’s market capitalization to the total crypto market capitalization, which currently stands at 12.80%.

When is the Federal Reserve interest rate decision scheduled to be announced?

The Federal Reserve’s interest rate decision is scheduled to be announced on Wednesday.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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