Hopes for an imminent "altseason" have been dashed as new data reveals a massive capital rotation back into Bitcoin.
Altcoin trading volumes have collapsed by nearly half over the last three months.
According to a new analysis by crypto analyst CryptoQuant, the market is witnessing a classic "flight to safety" as Bitcoin consolidates following its recent sharp correction.
Traders often anticipate altcoins to outperform during market pauses, but on-chain and exchange data shows the opposite is happening: investors are abandoning speculative assets to shelter in the market leader.
Alts capitulate
Bitcoin is currently trading within a tight range between $65,000 and $72,000. This specific zone is characterized by significant accumulation from whales, long-term holders, and institutional investors.
At the same time, the broader altcoin market is hemorrhaging liquidity at a rather rapid pace.
This behavior is typical of deep corrections or the late stages of bear markets. Capital rotates out of riskier assets and back into the benchmark cryptocurrency.
As reported by U.Today, Strategy's Michael Saylor recently opined that Bitcoin was in the middle of a bear market.
A 50% crash in volume
Just three months ago, altcoins dominated the exchange, accounting for 59.2% of all trading volume.
By mid-February, that share had plummeted to 33.6%, marking an almost 50% contraction in altcoin activity.
A pivotal change occurred on Feb. 7, when Bitcoin moved back above $60,000.
On that day, Bitcoin reclaimed its position as the most traded asset class on Binance, capturing 36.8% of total volume.
This "risk-off" rotation is not unique to the current cycle. Darkfost points out that similar patterns emerged during the corrections of April 2025, August 2024, and the bear market lows of October 2022.
"It is particularly striking to observe how Bitcoin’s share of trading volume increases during periods of uncertainty and market stress," the analysis stated. "In these environments, investors naturally gravitate toward BTC... ."
Vladislav Sopov
Dan Burgin