Despite growing expectations of an imminent altcoin season, industry insiders are pointing to capital flowing back into Bitcoin and corporate cryptocurrency treasury firms, raising doubts about the traditional crypto market cycle. Corporate digital assets treasuries (DATs) have syphoned around $800 billion worth of retail investor capital from the altcoin market, according to crypto market intelligence company 10x Research.
"Liquidity, momentum, and conviction have all migrated elsewhere, leaving the altcoin market eerily quiet," 10x Research wrote in a Friday blog post. "Our models show a decisive rotation back into Bitcoin, even as Korean retail traders, once the heart of altcoin speculation, shift their focus to U.S. crypto stocks."
"Altcoins have underperformed Bitcoin by roughly $800 billion this cycle — a shortfall that would have largely benefited retail investors," 10x said, adding that this is leading retail to seek "alternative avenues for quick returns."
Technical Indicators Signal Crypto Capital Rotation Back Into Bitcoin
Despite continued calls for an altcoin season, a key altcoin indicator suggests that investors may be seeking more Bitcoin exposure rather than smaller cryptocurrencies. 10x Research’s “technical altcoin model” suggests that crypto investments are rotating back to Bitcoin, indicating that the $19 billion crypto market crash has disrupted the momentum previously gained by altcoins.
"The model’s pivot back toward Bitcoin came at a critical moment, two weeks before altcoins suffered a sharp sell-off on October 11, 2025," 10x said.
Despite rising hopes for an altcoin season, most indicators are signaling the opposite.
CoinMarketCap’s altcoin season indicator currently stands at 23, which still signals “Bitcoin season” until the gauge surpasses the 75 level.
In a silver lining to the correction, investors may view the record $19 billion liquidation event as a buying opportunity in a dynamic that may fuel Bitcoin’s rise to $200,000 before the end of the year, Standard Chartered’s global head of digital assets research, Geoff Kendrick, told Cointelegraph.