Altcoin Volumes Fall 50% as Capital Shifts Back to BTC

Amid ongoing price swings, the crypto market is entering another major rotation phase, as trading activity in altcoins has dropped significantly and capital is shifting back to the leading digital asset, bitcoin (BTC).

According to recent data from CryptoQuant.com, altcoin trading volume has declined to about 50%, suggesting a significant shift in investor behaviour.

Altcoin Sell Pressure Reaches 5-Year High

Interestingly, analysts noted that it is not just a short-term dip, but a broader trend that has been building up for more than a year. For the past 13 months, altcoins have experienced continuous net selling on centralised exchange (CEX).

In other words, more traders and investors have been selling altcoins rather than acquiring them. As such, the consistent selling pressure has hit its highest peak in five years.

Notably, this action often occurs during the late stage of market corrections, when confidence and interest in smaller digital assets decline, and investors retreat to more established and stronger coins, such as BTC.

50% Volume Drop Not Altcoin End

CryptoQuant also pointed out a recurring pattern that appeared several times in crypto history. The blockchain analytics firm notes that rotations happened in April 2025 and August 2024, both during corrective phases.

Another happened in October 2022, near the end of the bear market. In each case, altcoins underperformed while BTC recovered. As of now, the crypto is trading at $67,136, according to data from CoinGecko. The asset has traded between $67000 and $69,000 over the week.

One key aspect of this cycle is the large absence of strong institutional accumulation in altcoins. For now, investors are not buying altcoin tokens. Instead, most of these big players are channeling focus to BTC, which is often regarded as the most secure and liquid asset in the crypto sector.

Investors see bitcoin as a hedge against inflation, and this shift has pushed BTC dominance higher while leaving many altcoins struggling to attract new capital.

While the fall by about 50% in altcoin volumes is significant, it does not necessarily signal the end of the altcoin market. Although the market behaviour is unpredictable, past cycles show that altcoins often rebound strongly once BTC enters a sustained uptrend.

Moreover, the recovery phase usually follows after selling pressure eases and the fund begins to rotate back into bitcoin. However, if the conditions are not met, altcoins may struggle to reach the top.

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