Altcoins remain under pressure as Bitcoin continues to dominate flows and attention — and incoming liquidity may not change that balance immediately. Since early October the broader altcoin market has slumped: Total2 is down roughly 36%, while smaller-cap tokens have fared worse, plunging about 46% in the last three months. (Source: X) That sell-off shows up in market breadth: only about 3% of altcoins listed on Binance are trading above their 200‑day moving average — a historically low reading. (Source: X) Altcoin dominance has also dropped to a five‑year low as capital concentrates elsewhere, chiefly into Bitcoin. Why Bitcoin soaks up flows Altcoins typically rally when liquidity is abundant and investors are willing to take on risk. Right now, neither condition is present: traders are protecting capital and shying away from smaller, less liquid tokens. Bitcoin’s deeper liquidity and relative stability make it the go‑to asset in risk-averse environments, which helps explain why altcoin rebounds have been short-lived and thinly supported by volume. New liquidity arrives — who benefits first? Macro conditions could shift that dynamic. The Federal Reserve is set to inject $6.8 billion into markets this week, bringing total liquidity injections to roughly $38 billion over the past 10 days. (Source: X) If that easing of financial conditions sparks a risk-on move, Bitcoin is likely to absorb the initial gains. Altcoins could follow, but only if renewed risk appetite produces sustained volume and capital rotation away from BTC. Outlook The path forward remains uncertain: continued weakness is possible if capital stays concentrated in Bitcoin, while a slower, more durable recovery for altcoins would require persistent liquidity and investor willingness to take on higher risk. AMBCrypto has previously suggested that 2026 may be pivotal for an “altseason,” with Ethereum positioned to lead such a rotation. Disclaimer: AMBCrypto's content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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