The Altcoin era is dead as Bitcoin’s dominance rises.
Crypto journalist
Anas Hasan
Crypto journalist
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Bitcoin's dominance continues its unrelenting embrace as markets converge toward year-end, with altcoins falling under intense supply pressure and an unforgiving token launch schedule.
Wintermute's latest market update confirms what many traders have feared. Retail investors are moving out of altcoins and back into core assets, signaling the end of an altcoin rally that is typically expected following Bitcoin's strong performance.
The broader crypto market extended losses over the past 24 hours, with Bitcoin down 1.12% below $87,000 and Ethereum down 1.5% near $3,000.
The NFT sector declined over 9% as weak short-term appetite dominated trading activity.
Bitcoin and Ethereum absorb market pressure
Crypto markets saw significant bearish pressure early last week, with Bitcoin falling below $85,000 and Ethereum breaching $3,000 by midweek.
Liquidations peaked at about $600 million on Monday, with another $400 million each day on Wednesday and Thursday.
Bitcoin slowly recovered to $90,000 during the week, but the price action was limited.
Persistent open interest fell by $3 billion for Bitcoin and $2 billion for Ethereum overnight, leaving markets vulnerable to sharper moves despite a decline in gains heading into the Christmas period.
Wintermuth's inward flow data shows overall buying pressure returning to core assets, with institutional inflows providing consistent support since the summer.
The most notable shift involves retailers moving out of altcoins and back into Bitcoin and Ethereum, aligning with the consensus that Bitcoin must lead before demand can sustainably climb the market's peak curve.
For now, Wintermuth stands on the path that “the market continues to be bearish as liquidity is thin and speculative tables continue to cool towards the end of the year.”
Macro Headwind Compound Altcoin Struggle
The market remains regionally bound.
Downward movements remain spontaneous but increasingly self-sustaining as leverage flows rapidly and capital is converted into liquid assets.
Bitcoin and Ethereum continue to act as the primary risk bearers as the broader market struggles under supply pressures and limited appetite.
“The cash and basis in the major sectors is relatively tight on the selloff,” Wintermuth said, adding that options markets continue to price out different outcomes as volatility remains high.
In particular, a recent analysis by Galaxy Research showed that even though Bitcoin reached more than $126,000 in October, it never crossed $100,000 when adjusted for inflation.
“If you adjust the price of Bitcoin for inflation using 2020 dollars, BTC has never crossed $100,000,” said Alex Thorne, head of research at Galaxy. In 2020 dollars, it increased to $99,848.
The introduction of traditional finance provides medium-term support
Traditional financial players continue to enter the space despite recent market volatility, providing a more sustainable basis for future growth.
Bitcoin added another 67,886 ETH worth $201 million to its coffers.
However, the net flows of Bitcoin and Ethereum ETFs have turned negative since early November, reflecting a decline in institutional participation and a decline in broader crypto-market liquidity.
Bitcoin ETFs recorded $650.8 million in outflows over the past four days, led by BlaRock's Bitcoin ETF (IBIT), which recorded the highest one-day inflow of $157 million.
Ethereum spot ETFs also recorded net inflows of $95.52 million, while all nine ETFs posted no inflows, according to SosoValue.
VALR Founder and CEO Farzam Ehsani outlines two compelling scenarios leading up to 2026.
“The current decline reflects strategic positioning by big players ahead of renewed inventory or the market is in a deep reset supported by macro headwinds and Federal Reserve policy,” he told Cryptonews.
David Schassler, head of multi-asset solutions at VanEck, maintained a bullish outlook despite the current downturn.
“Bitcoin is lagging the Nasdaq 100 index by about 50% year-to-date, and that displacement is positioning it to outperform in 2026,” he wrote in the company's 2026 Outlook report.
Ehsani sees scope for Bitcoin to revisit the $100,000-$120,000 range in the second quarter of 2026, although he cautioned that “there will be no altcoin season unless new major players emerge; at best, we expect a market recovery to previous levels.”
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