Bitcoin has reclaimed the $92,000 level after weathering $2 billion in liquidations, as traders and investors increasingly concentrate on major cryptocurrencies. Both BTC dominance and ETH dominance remain elevated, indicating a growing preference for established digital assets during times of economic uncertainty.
Compressed basis rates and declining open interest mark the ongoing consolidation in the crypto market. As a result, both institutional and retail participants are moving capital into the most reputable assets, showing limited appetite for leverage.
Market Focus Shifts to Bitcoin and Ethereum
Crypto traders are shifting toward major assets. Bitcoin’s dominance is holding steady at 59.11% of total crypto market capitalization among the top 125 cryptocurrencies. Ethereum’s dominance stands at 12.80%, a minimal daily move within a tight range between 12.78% and 12.81%.
According to Wintermute’s latest market update, this rotation into majors reflects a broader trend of selective risk-taking over broad beta exposure. The trading firm noted rare simultaneous inflows into BTC and ETH from both retail and institutional sides. This suggests that market participants are prioritizing quality amid fading Nasdaq momentum.
Last Friday’s sharp $4,000 intraday drawdown in Bitcoin highlighted the fragility of the current recovery. It was triggered by cascading liquidations exceeding $2 billion in just over an hour. However, the market absorbed the shock without follow-through selling, suggesting consolidation rather than capitulation.
Central Bank Decisions to Drive Next Move
With the crypto market in a holding pattern, attention now turns to upcoming central bank decisions. The Federal Reserve’s rate decision on Wednesday and the Bank of Japan’s meeting next week are expected to shape rate differentials and cross-asset volatility into year-end.
Wintermute observed that high year-end implied volatility points to a split market. Traders are targeting either $85,000 or $100,000 by late December. In the absence of a decisive macro surprise, crypto is likely to remain range-bound.
The rise of delta-neutral and carry-oriented strategies, particularly beyond the majors, suggests a market prioritizing capital efficiency while waiting for clearer signals. Interest has shifted toward lower-cap assets where funding remains attractive, confirming limited appetite for directional altcoin risk.
“The market is consolidating without conviction, with macro events set to determine the next directional break,” Wintermute concluded in its report. For now, traders appear content to capture yield rather than speculate on breakouts.
This environment suggests that an altcoin season remains unlikely in the near term. With capital flowing into BTC and ETH rather than rotating out, traders would avoid directional bets on altcoins. They favor delta-neutral strategies, but the conditions for a broad altcoin rally have yet to materialize. A sustained alt season would likely require macro uncertainty to clear, BTC to stabilize above key resistance levels, and risk appetite to return—none of which appear imminent.
