Altcoin Rotation is Gradually Coming to an End

Key Points

• Ethereum withdrawal activity drops, showing weaker dominance in driving overall market volumes.
• Bitcoin futures dominance steadies, hinting at a shift back from altcoin momentum.
• Crypto market RSI hits oversold zone, suggesting scope for a possible relief rebound.

The latest data shows Ethereum’s influence in the market is fading as withdrawal activity drops to multi-year lows. Previous spikes in ETH withdrawals often aligned with major turning points, but such signals have been absent in recent months.

This decline reinforces Ethereum’s weakening role in driving overall market volumes, which have shifted toward other assets. As ETH activity falls, the likelihood of it leading the next phase of growth decreases.

BTC Dominance Signals Rotation Nearing Its Final Stage

Bitcoin’s dominance in futures trading volume surged above 45% earlier in 2025 but has since retreated to 30–35%. This fall reflected traders rotating capital into altcoins in search of higher returns.

However, the latest slowdown in this rotation indicates that BTC could soon regain relative strength. The sharp drop in altcoin momentum marks a potential turning point where consolidation may shift back into Bitcoin.

Market Pressure Builds Despite Oversold Conditions

Altcoin trading volumes climbed to nearly 40–45% of the total, but the trend now shows signs of stabilizing. The plateau suggests the extended rotation cycle is peaking, confirming that capital flows into altcoins may be losing intensity.

Meanwhile, the broader crypto market has weakened, with total capitalization slipping to $3.89 trillion after a 3.82% decline. The CMC20 index also dropped 3.99% to $1462.4, showing leading assets remain under pressure.

Despite losses, investor sentiment holds neutral, as reflected by the Fear and Greed Index at 47. The Altcoin Season Index at 62 points to lingering altcoin outperformance, though this could fade if selling deepens.

A key technical signal is the Average Crypto RSI, now at 29.98, placing the market in oversold territory. This condition often precedes short-term relief rallies, though sustained recovery depends on whether buyers re-enter strongly.

Together, these developments suggest that altcoin rotation is reaching its final phase while Bitcoin prepares to reassert its dominance. The market remains under pressure, but oversold conditions may offer short-term opportunities if momentum stabilizes.