The Bitcoin capital absorption effect continues, when will the altcoin predicament be broken?

2025-12-22 20:40:10

[Coin World] Recently, everyone should have felt that Bitcoin is sucking up the entire market's funds. Total2 has been falling since October, with a drop of 36%, and the total market capitalization of alts has also slid to its lowest proportion in five years.

What's even more heartbreaking is that only 3% of altcoin prices in a leading exchange are above the 200-day moving average — this indicates that the vast majority of altcoins are underwater.

However, the situation is not completely without change. The Federal Reserve has injected $38 billion in liquidity over the past 10 days, and this money will first flow into risk assets like Bitcoin, and then it may slowly seep into alts. Whether a real rebound can take shape depends on when market risk appetite turns back. Based on the pace, 2026 could be a window period for a broader rebound of alts.

BTC-0.37%

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