Bitcoin-to-altcoin Rotation Collapses: Is Altseason Postponed?

Traders are no longer recycling Bitcoin profits into smaller altcoins the way they did in prior bull cycles, and the rotation trend has fallen to its weakest level since 2021. Ki Young Ju of CryptoQuant said the Bitcoin-to-altcoin rotation has "basically disappeared," with BTC-pair altcoin trading volume collapsing to post-2021 lows.

The metric excludes major coins like Ether, XRP, BNB and Solana and focuses on mid- and lower-cap altcoins traded against Bitcoin. Those BTC-pair flows surged in 2017 and 2021 and helped produce record altseasons, but the recent weakness suggests Bitcoin is no longer the main liquidity source for broad altcoin speculation.

"The era of alts pumping just because BTC pumps may be over," Young Ju added. At the same time, altcoin capital is becoming more concentrated: the non-BTC, non-stablecoin market stands near $600 billion, with the top 10 tokens making up roughly $483 billion, or about 80.5%.

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