Liquidity in the digital asset market has been concentrated in core assets such as Bitcoin (BTC) and Ethereum (ETH), dampening the momentum of altcoins across the sector. The shift underscores a risk-off tone as investors focus on established assets.
Last year’s altcoin rally lasted 19 days on average, down sharply from the prior year’s 61 days, indicating a markedly shorter cycle. The early end to the meme coin cycle at the start of this year also constrained overall market fund rotation.
Institutional participants are favoring news-driven, short-term strategies over simple seasonal directional bets, signaling a move toward more repetitive and precise trading approaches.
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