CryptoQuant: Bitcoin-to-altcoin rotation has collapsed

Ki Young Ju, founder and CEO of CryptoQuant, wrote that the long-standing bitcoin-to-altcoin rotation has collapsed. BTC-quoted altcoin trading volume fell to its lowest level since 2021, while net spot selling of altcoins reached a five-year high. Bitcoin dominance held near 58% through June.

CryptoQuant pointed to a sharp drop in aggregate BTC-pair volume and multiple on-chain measures showing months of sustained net selling pressure on spot exchanges. An industry gauge, the Altcoin Season Index, stood at 49, below the 75 reading typically used to confirm an alt season.

Ki wrote that the era when ‘alts pump just because BTC pumps’ may be over and summarized the shift: ‘Bitcoin-to-altcoin asset rotation that once fueled alt seasons has basically disappeared.’

He attributed the change to where new capital is flowing. Institutional inflows through bitcoin exchange-traded funds and corporate treasury allocations have tended to remain in bitcoin rather than move into higher-risk tokens. Reduced liquidity and a larger supply of tokens have made speculative capital more selective, limiting the breadth of rallies that once lifted many altcoins at once.

Ki advised rejecting most tokens and identified three narrow groups he considers worth attention: tokens tied to global internet companies building tokenized market layers, decentralized finance protocols that generate real revenue, and projects connected to stablecoins, tokenized equities and real-world assets. He added, ‘99.9% of altcoins should be rejected.’

CryptoQuant’s findings arrive as traders and investors reassess whether prior cycle strategies still apply. The firm’s data show broad-based altcoin gains tied to bitcoin rallies have become rare, and market participants are placing more emphasis on token utility, revenue generation and alignment with traditional finance trends.