Key Points
- Market data shows a shift of capital back into Bitcoin as altseason remains elusive.
- Bitcoin’s dominance increases, while Ethereum experiences significant ETF outflows.
Despite expectations for an altseason, recent market data indicates a distinct refocusing of capital into Bitcoin (BTC).
Analysts had predicted a revival of altcoins, but ETF flows suggest that both institutional and retail investors are currently more interested in Bitcoin than altcoins.
Bitcoin’s Market Dominance
Data from CoinMarketCap reveals that Bitcoin’s dominance has risen to 59.1%.
The leading cryptocurrency has also reclaimed the $111K price level, bouncing back from weekly lows of $104K.
Ethereum ETFs Experience Outflows
On October 23, Ethereum ETFs reported total net outflows of $128 million.
None of the nine Ethereum ETFs recorded inflows, marking one of the largest daily outflows since their inception.
In contrast, Bitcoin spot ETFs recorded total net inflows of $20.33 million, with BlackRock’s IBIT leading the pack with a massive $108 million inflow.
The Altcoin Season Index currently reads 24, heavily favoring Bitcoin.
Ethereum’s failure to surpass its 2021 all-time high of $4,800, compared to Bitcoin reaching new highs above $120K, indicates weaker demand for altcoins.
Bitcoin Dominates Futures Market
Data from CryptoQuant shows that Bitcoin continues to dominate Binance’s futures market, accounting for 27.17% of the exchange’s $2.002 trillion futures volume in October.
Bitcoin futures trading reached $543.33 billion in October, a significant increase from September’s $418 billion.
The consistent $2 trillion-plus trading volume indicates increased market activity and confidence.
CryptoQuant analysts believe that if the rising trend in funding rates and open interest continues, Bitcoin may be set for a breakout beyond its historical resistance levels.
Altseason: Delayed but Not Dead
Crypto influencer Ash Crypto suggests that bull markets usually start with liquidity flowing into safer assets before rotating into riskier ones.
He explains that this sequence often unfolds as USD, BTC, ETH, high caps, and finally low caps, which aligns with previous cycles in 2017 and 2021.
While Bitcoin has surged 8.5x from its 2022 bear market low of $15,400 to around $126,000, altcoins remain range-bound.
Investors have favored safe havens such as gold, high-performing US equities, and Bitcoin, not altcoins.
Nonetheless, Ash Crypto believes that with three Federal Reserve rate cuts expected in 2025 and quantitative tightening coming to an end, liquidity will eventually return to risk assets as investors seek the next big crypto.
