Altcoin Season Over? Capital Is Once Again Flowing into Bitcoin

The cryptocurrency market is showing signs of shifting capital flows back into Bitcoin BTC $111 922 24h volatility: 0.7% Market cap: $2.23 T Vol. 24h: $26.36 B , leaving altcoins struggling to catch momentum.

Recent ETF data, futures market signals, and technical patterns in the broader altcoin market cap suggest that Bitcoin is once again at the center of institutional and retail attention.

From September 2 to September 5 (ET), Ethereum spot ETFs saw a weekly net outflow of $788 million — the largest on record — with no single ETF recording a net inflow. In contrast, Bitcoin spot ETFs posted a weekly net inflow of $246 million, marking two consecutive weeks of net… pic.twitter.com/jWWgqEfrhO

— Wu Blockchain (@WuBlockchain) September 8, 2025

Ethereum Outflows vs. Bitcoin Inflows

Between Sept. 2 and Sept. 5, Ethereum spot ETFs recorded $788 million in net outflows, the largest on record, with no ETF registering a net inflow.

In contrast, Bitcoin spot ETFs saw a net inflow of $246 million, marking the second consecutive week of positive flows. The divergence shows that investors prefer BTC while altcoins fail to print expected gains.

Unexpect Slump in Taker Buy/Sell Ratio

According to CryptoQuant, the Taker Buy/Sell Ratio, a key indicator of futures market sentiment, has slumped to cycle lows, comparable to levels seen at Bitcoin’s 2021 peak.

Unlike previous cycles where Binance futures buy volume correlated strongly with Bitcoin’s price rise, current conditions reveal a gap, i.e., Bitcoin has hit new highs without equivalent futures market support.

Analysts warn that liquidity across both spot and futures is weakening, and a sustained recovery in liquidity will be critical to extend this bull cycle.

Analyst Views: Altcoin Bull Market or False Hope?

Prominent crypto analyst Michael van de Poppe maintains that an altcoin bull market is “around the corner,” arguing that the absence of retail participation and macroeconomic headwinds has delayed, not destroyed, the altcoin cycle.

Van de Poppe dismissed the traditional four-year cycle narrative, instead pointing to broader macroeconomic and institutional factors that he believes are extending market phases.

The #Altcoin bull market is around the corner –> I'm all-in.

It's difficult to understand why the markets haven't been moving upwards.

Well, is it?

There hasn't been retail interest. Solely dedicated towards $ETH and $BTC.

Times are changing, that's why I'm all-in altcoins.… pic.twitter.com/qVrmEadDP6

— Michaël van de Poppe (@CryptoMichNL) September 7, 2025

He compared the current correction and stagnation to past pre-breakout phases in 2017, arguing that markets may be “building up for the next big breakout.”

Still, altcoins have failed to sustain rallies since late 2023, and their underperformance compared to Bitcoin has led many traders to wonder which is the next crypto to explode in 2025.

Altcoin Market Chart Analysis

Looking at the TOTAL3 chart (crypto total market cap excluding Bitcoin and Ethereum ETH $4 308 24h volatility: 0.1% Market cap: $519.94 B Vol. 24h: $17.71 B ), the altcoin market is consolidating near $1.06 trillion after months of choppy sideways action.

The Bollinger Bands are tightening, signaling that a volatility expansion is imminent. Meanwhile, the MACD indicator remains relatively flat, reflecting indecision among traders.

A breakout above $1.10 trillion could spark renewed confidence in altcoins, with the next resistance zone sitting around $1.25 trillion.

A decisive move past this level would confirm a potential reversal, opening the door for a broader altcoin rally.

On the other hand, failure to hold above $1 trillion could trigger a deeper correction, exposing support near $900 billion and possibly retesting the $740 billion zone last seen in mid-2024.

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