Bitcoin continues to consolidate its dominance in the crypto market as interest in altcoins sharply declines, according to the latest data from CryptoQuant. The analytics platform points to shifting investor sentiment, with capital increasingly flowing into Bitcoin (BTC) while altcoin trading volumes contract, potentially signaling the end of the current “altseason.”
Altcoin trading activity contracts sharply
The one-year cumulative buy/sell quote volume difference for altcoins excluding Bitcoin and Ethereum (ETH) has dropped into negative territory, now standing at –$36 billion. This metric reflects a decline in trading activity and accumulation trends across the broader altcoin market since February 2025, indicating reduced investor engagement.
Earlier in the year, the same indicator had flipped positive, marking the peak of altcoin accumulation. However, that rally was short-lived. A swift reversal followed, pushing the volume metric back below zero, a clear signal that buyers are pulling away from altcoins.
CryptoQuant analysts note that a sustained recovery in this indicator is essential for any future altcoin rally. Without renewed accumulation, altcoins are likely to remain under pressure as liquidity and market confidence dry up.
Bitcoin gains ground as Ethereum lags behind
While Bitcoin maintains its strength, Ethereum is struggling to recover. ETH currently trades 48% below its all-time high of $4,891 from November 2021 and has failed to attract significant buy-side interest during recent market rallies. This underperformance reflects broader weakness among leading altcoins.
In contrast, Bitcoin is trading near $105,000, just 6.4% shy of its historical peak, and boasts a market capitalization exceeding $2 trillion. This growing divergence between BTC and other digital assets further underscores Bitcoin’s appeal in the eyes of investors, particularly institutional players.
Market flows continue to show a concentration of capital in Bitcoin, with Ethereum and other altcoins seeing comparatively limited traction. The data suggests that the current market cycle is favoring BTC as the preferred vehicle for exposure to digital assets.
Institutional inflows and technical signals favor Bitcoin
Fueling this momentum, U.S.-listed spot Bitcoin ETFs have reported $1.01 billion in net inflows over the past three trading sessions, highlighting sustained institutional interest. These inflows contribute to Bitcoin’s rising market dominance and reinforce its perceived stability relative to other crypto assets.
Technical indicators also align with the bullish sentiment. The Bitcoin Macro Oscillator (BMO) an aggregate signal combining metrics such as MVRV, VWAP, CVDD, and Sharpe ratios, currently reads 0.93. Historically, a BMO value below 1.4 indicates that further upside is likely before a cycle peak is reached.
Together, these factors point to Bitcoin’s continued leadership in the current market environment. Unless altcoin volume accumulation rebounds meaningfully, Bitcoin is likely to extend its dominance well into the next phase of the crypto market cycle.
