Bitcoin rotations into altcoins collapses: Have altseasons 'disappeared'?
Bitcoin profits are no longer flowing into smaller altcoins the way they did in past bull cycles, weakening the case for a broad altseason. CryptoQuant data shows BTC-pair altcoin trading volume has fallen to its lowest level since 2021, suggesting Bitcoin is no longer the main source of liquidity for speculative altcoin buying. The alt market is also more concentrated: about 80% of non-BTC, non-stablecoin market value sits in the top 10 tokens, and the number of altcoins with over $1 billion in market cap has dropped sharply since 2021. This points to a market led by fewer, stronger projects rather than a wide speculative surge. BTC dominance is also rebounding, which may keep capital in Bitcoin and postpone altseason. Stronger themes appear to be revenue-generating DeFi, stablecoins, tokenized real-world assets, and AI-related tokens.
