Bitcoin Gaining Traction Again as Alleged Altcoin Boom Ends, Signifying Capital Shift
In recent weeks, the cryptocurrency market has witnessed a notable shift, with Bitcoin gaining significant momentum while the altcoin market consolidates.
The Bitcoin market has hit new highs, interestingly, without equivalent futures market support. This divergence could be a sign of increased interest from institutional investors, as indicated by the significant net inflows into Bitcoin spot ETFs. Between mid-September 2025, over $2.3 billion flowed into Bitcoin spot ETFs, marking the highest weekly inflow since mid-July. Notable companies like Capital B and Prenetics have also added Bitcoin to their reserves, with Capital B acquiring 48 BTC and Prenetics planning to accumulate 1 BTC daily.
On the other hand, the altcoin market has been experiencing a period of consolidation. After months of choppy sideways action, the total altcoin market is currently hovering near $1.06 trillion. Despite this, prominent crypto analyst Michael van de Poppe remains bullish on altcoins, comparing the current correction and stagnation to pre-breakout phases in 2017. He predicts a potential upcoming big breakout.
However, the gold rally is delaying Altcoin Season 3.0, according to analysts. The failure of altcoins to sustain rallies since late 2023 has left traders questioning which crypto will explode in 2025. If the total altcoin market fails to hold above $1 trillion, it could trigger a deeper correction, exposing support near $900 billion and possibly retesting the $740 billion zone last seen in mid-2024.
The TOTAL3 chart analysis, based on data as of September 8th, 2025, shows a tightening of Bollinger Bands, signaling a volatility expansion is imminent, and a relatively flat MACD indicator, reflecting trader indecision. The Taker Buy/Sell Ratio, a key indicator of futures market sentiment, has also slumped to cycle lows, indicating a bearish outlook.
Liquidity across both spot and futures markets is weakening, and a sustained recovery in liquidity will be critical to extend this bull cycle. The 24-hour volatility of the TOTAL3 market cap is currently 0.1%, a reflection of the market's current stability.
Between Sept. 2 and Sept. 5, Ethereum spot ETFs recorded $788 million in net outflows, the largest on record, with no ETF registering a net inflow. This shift in capital flows could be a sign of investors' preference for Bitcoin over altcoins, as indicated by the divergence in ETF flows.
In conclusion, the cryptocurrency market is showing signs of shifting capital flows back into Bitcoin, with the altcoin market consolidating near record highs. The future of the market remains uncertain, but with institutional interest in Bitcoin on the rise and analysts predicting a potential altcoin breakout, it's an exciting time for cryptocurrency investors.
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