Bitcoin has recovered the level of $92 thousand after facing liquidations of $2 billion, while traders and investors are increasingly focusing on major cryptocurrencies. Both the dominance of BTC and ETH remain high, indicating a growing preference for established digital assets during periods of economic uncertainty.
Compressed base rates and the drop in open interest mark the current consolidation of the crypto market. As a result, both institutional and individual investors are directing capital towards the most recognized assets, demonstrating limited appetite for leverage.
Market turns attention to Bitcoin and Ethereum
Crypto traders are migrating to major assets. Bitcoin's dominance remains stable at 59.11% of the total crypto market capitalization among the top 125 coins. Ethereum's dominance is at 12.80%, with minimal daily movement in a narrow range between 12.78% and 12.81%.
According to the latest market update from Wintermute, this migration to major assets reflects a broader trend of selectivity in risk, rather than widespread exposure. The company highlighted rare and simultaneous entries in BTC and ETH by both retail and institutional investors. This indicates that participants prioritize quality amid the decline in momentum in Nasdaq.
The sharp intraday drop of $4 thousand in Bitcoin last Friday exposed the fragility of the current recovery. The movement was triggered by a series of liquidations above $2 billion in just over an hour. Nevertheless, the market absorbed the shock without triggering subsequent selling, suggesting consolidation rather than capitulation.
Central bank decisions are expected to define the next move
With the crypto market in a holding pattern, attention turns to the upcoming decisions of central banks. The decision on interest rates from the Federal Reserve this Wednesday and the Bank of Japan meeting next week are expected to influence interest rate differentials and volatility between assets until the end of the year.
Wintermute stated that the high implied volatility for the end of the year points to a divided market. Traders are targeting levels between $85 thousand and $100 thousand by the end of December. Without a significant macroeconomic surprise, the crypto segment is expected to continue operating in a sideways range.
The advancement of delta-neutral and carry-focused strategies, especially outside the major assets, points to a market that prioritizes capital efficiency while awaiting clearer signals. Interest has shifted to lower-cap assets, where funding remains attractive, confirming a restricted appetite for directional risk in altcoins.
"The market is consolidating without conviction and macroeconomic events will define the next directional move," assessed Wintermute in its report. At the moment, traders prefer to capture yield rather than bet on sharp movements.
This scenario indicates that an altcoin season remains unlikely in the short term. With capital migrating to BTC and ETH, instead of moving out of these assets, traders are avoiding directional bets on altcoins. They prioritize delta-neutral strategies, while the conditions for a broad appreciation of altcoins are still not present. A sustained altcoin season would require the end of macroeconomic uncertainty, stability of BTC above important resistances, and a return of risk appetite — factors that, for now, are not confirmed.
The article 'Altseason on hold as capital migrates to Bitcoin and Ethereum' was seen for the first time on BeInCrypto Brazil.
