Altcoin Rallies Shrink as Traders Shift Focus to Bitcoin and Ethereum

Wintermute's 2025 Digital Asset OTC Markets report highlights a significant reduction in altcoin rally durations, dropping to an average of 19–20 days from the 60-day runs in 2024. Tightened market flows led capital back into major cryptocurrencies like Bitcoin and Ethereum, where liquidity is more substantial.

Key Points

Altcoin open interest dropped sharply, with a 55% decline since October 2025 after a deleveraging event on October 10.
Lower liquidity in altcoin markets resulted in shorter rallies, turning multi-month trends into short bursts.
Institutional investments through ETFs and other channels directed funds towards Bitcoin and Ethereum, consolidating market focus.
Momentum drivers shifted to tactical, quick events rather than prolonged narratives, causing rapid price swings.

Market Outlook

A sustained altcoin season requires renewed retail interest, institutional support for smaller tokens, and stable macroeconomic conditions.
For 2026, a broader crypto rebound hinges on institutional interest, macroeconomic rate changes, and a return to risk-on strategies by retail investors.
If these factors align, rally durations may extend beyond the current average of 19–20 days; otherwise, brief movements into major coins will persist.