Bitcoin Dominates as Altcoins Stumble—Will the Crypto King Keep Its Crown?

Bitcoin’s bull run leaves altcoins eating dust—again. While BTC flirts with new highs, Ethereum, Solana, and the rest of the crypto pack struggle to keep pace. Is this another temporary divergence or the start of a brutal ’flippening’ in reverse?

Market cycles favor the OG crypto. Bitcoin’s institutional adoption and ETF inflows give it a gravitational pull that altcoins can’t match—yet. Memecoins pump, AI tokens hype, but when risk-off sentiment hits, traders still rush back to BTC like it’s a Swiss bank account (just with more volatility and less paperwork).

Here’s the cynical take: Wall Street loves a winner, and right now, Bitcoin’s the only crypto they’re willing to put on their golf-course PowerPoint decks. The rest? Still ’niche assets’—or as they call them in finance, ’someone else’s problem.’

Source: CryptoQuant

Are altcoin prices taking a hit from the previous bullish projection

Altcoins faced the opposite trend. During the same period, long liquidations exceeded shorts by nearly $1 billion.

This reveals a sharp market imbalance. Investors correctly backed Bitcoin’s bullish case, but wrongly expected an “altseason” to follow.

Instead of rebounding, altcoins kept falling. Over-leveraged long positions were wiped out, especially as volatility increased and support failed.

While Leveraged risk-on assets struggled, Bitcoin gained institutional traction through ETF inflows.

Source: CryptoQuant

Growing diversification of risk appetite

Since December 2024, the gap in liquidations has widened. Altcoin liquidations have greatly exceeded Bitcoin’s by various metrics.

This trend highlights a growing risk divide in crypto. Bitcoin is viewed as a safer, institutional-grade asset, while altcoins remain speculative and prone to deeper losses.

ETF inflows into Bitcoin have amplified this gap. As Bitcoin attracts capital and short sellers get squeezed, altcoin buyers are getting trapped.

The anticipated altcoin season has led to billions lost in liquidated long positions.

What does the divergence have in store for the market

These liquidation trends reflect a shifting market. Altcoins struggle to match Bitcoin’s demand-driven rally. The sentiment remains selective, favoring BTC over broader market optimism.

Unless capital starts flowing back into altcoins, the gap will keep expanding. Leverage remains risky at this crucial stage, especially outside Bitcoin.

The aftermath is clear on the altcoin market cap daily chart.

Source: TradingView