The cryptocurrency market is witnessing a notable capital outflow from small-cap altcoins as risk appetite diminishes, according to Bloomberg. Market maker Wintermute's OTC report highlights that the median rally cycle for altcoins in 2025 has shortened to approximately 20 days, down from the previous 40-60 days. Since October, the open interest in altcoin futures has decreased by about 55%, equating to over $40 billion in exposure vanishing.
Market participants are increasingly shifting their focus to more liquid assets like Bitcoin and Ether, which have stronger correlations with macroeconomic factors. This trend reflects a preference for stability amid changing market conditions.
Altcoin Market Sees Significant Capital Outflow as Risk Appetite Declines
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