Where Is Altseason? Money Is Rotating Back into Bitcoin, ETH ETFs Bleed

Updated 5 hours ago by · 3 mins read

With over $128 million exiting ETH ETFs and Bitcoin futures activity hitting record highs, the market shows a clear preference for BTC.

The long-awaited altseason is nowhere to be seen as market data reveals a clear rotation of capital back into Bitcoin BTC $109 998 24h volatility: 0.3% Market cap: $2.19 T Vol. 24h: $55.10 B . While analysts predict an eventual altcoin revival, ETF flows show that institutional and retail investors are focused more on BTC than altcoins.

According to the data from CoinMarketCap, the dominance of Bitcoin has soared to 59.1% while the leading cryptocurrency has reclaimed the $111K price level, rebounding from weekly lows of $104K.

Bitcoin ETFs Attract Inflows While Ethereum Bleeds

On Oct. 23, spot Ethereum ETH $3 905 24h volatility: 1.6% Market cap: $471.39 B Vol. 24h: $32.61 B exchange-traded funds (ETFs) saw total net outflows of $128 million, with none of the nine ETH ETFs recording inflows. This marks one of the largest daily outflows since their launch.

On the other hand, Bitcoin spot ETFs recorded total net inflows of $20.33 million, led by BlackRock’s IBIT with a massive $108 million inflow.

Meanwhile, the Altcoin Season Index reads 24, which heavily favors the world’s largest digital asset. Ethereum’s inability to break past its 2021 all-time high of $4,800 in contrast to Bitcoin printing new highs above $120K represent the weaker demand for altcoins.

Futures Market Confirms Bitcoin’s Dominance

According to data from CryptoQuant, Bitcoin continues to dominate Binance’s futures market, commanding 27.17% of the exchange’s $2.002 trillion futures volume in October.

Monthly Bitcoin futures trading reached $543.33 billion, a major increase from September’s $418 billion. The consistent $2 trillion-plus trading volume showcases increased market activity and confidence.

BTC futures trading volume | Source: CryptoQuant

CryptoQuant analysts suggest that if the rising trend in funding rates and open interest continues, Bitcoin may be poised for a breakout beyond its historical resistance levels.

Altseason Delayed, but Not Dead

Crypto influencer Ash Crypto stated that bull markets typically begin with liquidity flowing into safer assets before rotating into riskier ones. He explained that the sequence often unfolds as USD, BTC, ETH, high caps, and finally low caps. This pattern has been consistent with previous cycles in 2017 and 2021.

Ash Crypto also pointed out that 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, top-performing US equities, and Bitcoin itself, not altcoins.

However, 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 look for the next big crypto.

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