Altcoins in trouble as Bitcoin and Ethereum consolidate their dominance at the end of 2025

The week closed with Bitcoin hovering around $87.35K and Ethereum at $2.93K, reflecting a market where the major players advance while the rest of the ecosystem struggles for relevance. Wintermute’s weekly analysis reveals that altcoins face significant pressures in this asset revaluation context.

The scenario of liquidations and portfolio reconfiguration

The recorded declines triggered approximately $1.4 billion in liquidations, marking an inflection point in market participant behavior. This movement reflects not only price volatility but also a profound strategic shift in how capital is distributed.

Expanding dominance: institutional and retail preferences converge

Daily data indicate a notable increase in Bitcoin’s participation within the total market cap. This phenomenon is driven by two parallel dynamics: on one hand, institutional investors continue channeling capital into BTC as a reserve asset. On the other, retail participants have reoriented their positions, prioritizing liquidity and stability over the speculative potential of emerging projects.

Traditional banking opens doors: medium-term implications

The inclusion of conventional financial institutions into the crypto space creates a cushion of sustained demand, particularly for Bitcoin and Ethereum. This structural support points toward a more robust price base in the coming months, contrasting with the volatility that typically characterizes altcoins during transition cycles.

Christmas pause: the seasonal factor shaping the short term

The holiday season’s trading inactivity keeps prices within relatively contained bands. This environment of low volume and limited liquidity tends to favor more established assets, deepening the competitive gap that altcoins face in regaining investor traction.