Bitcoin has reclaimed the $92,000 level after resisting a liquidation of $2 billion, as traders' and investors' focus shifts to major cryptocurrencies. The dominance of BTC and ETH remains high, indicating an increased preference for established digital assets during times of economic uncertainty.
The compressed interest rates and the decline in open interest continue to witness a phase of consolidation in the cryptocurrency market. As a result, both institutions and individual investors are directing their capital towards the most reliable assets, indicating a limited appetite for leverage.
Market focus has shifted to Bitcoin and Ethereum.
Cryptocurrency traders are turning to major assets. Bitcoin's dominance stands at 59.11% of the total market capitalization of cryptocurrencies among the top 125 digital currencies. Ethereum's dominance is 12.80%, which is a slight daily move within a narrow range between 12.78% and 12.81%.
According to the latest market update from Wintermyot, these moves towards major currencies reflect a broader trend of selective risk-taking rather than concentrated exposure to the market. The trading team noted rare simultaneous flows to BTC and ETH from both institutional and individual sides, indicating that market participants prioritize quality amidst a decline in Nasdaq momentum.
The sharp drop of $4,000 within a single day last Friday in Bitcoin highlighted the fragility of the current recovery. This was caused by successive liquidations exceeding $2 billion over just over an hour. Nevertheless, the market absorbed the shock without successive sell-offs, indicating resilience rather than capitulation.
Central bank decisions will determine the next move.
Attention is focused as the cryptocurrency market remains in a state of waiting on the upcoming decisions of central banks. The Federal Reserve's decision on interest rates on Wednesday and the Bank of Japan's meeting next week are expected to shape price differences and volatility among assets until the end of the year.
Wintermyot observed that the increase in implied volatility until the end of the year indicates a divided market. Traders are betting that the price will reach $85,000 or $100,000 by late December. In the absence of a major surprise on the macro front, cryptocurrencies are likely to remain within a limited range.
The rise of neutral delta strategies based on returns, especially outside of major currencies, indicates that the market prioritizes capital efficiency while awaiting clearer signals. Attention has shifted towards lower market cap assets where funding remains attractive, highlighting a weak appetite for risk in altcoins outside the main trend.
Wintermyot concluded its report by stating that the market is consolidating without conviction, with major economic events poised to determine the next price breakout. Currently, it seems traders prefer to capitalize on returns rather than speculate on upward trends.
This environment suggests that an altcoin season is not expected in the near term. With capital continuing to flow into BTC and ETH instead of trading outwards, traders are likely to avoid directional bets on altcoins. They prefer neutral strategies, but conditions for a broad altcoin rally have yet to materialize. The continuation of an altcoin season often requires the removal of overall uncertainty, Bitcoin stabilizing above key resistance levels, and a return of risk appetite—and none of these conditions seem close to happening currently.$BTC $ETH $SOL
