Capital is increasingly flowing out of smaller-cap cryptocurrencies as risk appetite diminishes, according to data from market maker Wintermute. In 2025, the median duration of altcoin rallies has decreased to approximately 20 days. Additionally, open interest in altcoin futures has plummeted by about 55% since October, erasing over $40 billion in exposure.
Investors are turning their focus toward more liquid and macro-sensitive assets like Bitcoin and Ether. This shift highlights a growing preference for stability and liquidity in the cryptocurrency market amid changing risk dynamics.
Capital Outflows Hit Smaller-Cap Cryptos as Investors Favor Bitcoin and Ether
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