The post Altcoin market eyes a bottom as Bitcoin consolidates – Is it time to rotate? appeared on BitcoinEthereumNews.com. The crypto market is on the lookout for early signs of a bottom. To start with, December opened with some serious volatility. Mid-week, a 5% drop in the TOTAL crypto market cap wiped out almost all the early-week momentum, pulling back from the brief rally to $3.17 trillion. Against this backdrop, Bitcoin’s [BTC] sideways chop looks like the usual cooling-off phase. Historically, when BTC enters consolidation, liquidity starts rotating into altcoins. Will the same playbook apply this time as well? A $300 million bet just raised the stakes for altcoins Traders have started capitalizing on the current market indecision. Supporting this, Coinalyze’s Open Interest (OI) shows a 1.85% jump in OI across all crypto assets excluding Bitcoin and Ethereum [ETH], pushing the total to $17 billion. This brings their combined OI share to 27.61%. Put simply, leverage is flowing back into altcoins. Adding to that, Arkham Intelligence recently flagged a wallet that opened a $300 million long position split across ETH, Ripple [XRP], and Hyperliquid [HYPE]. Source: X However, the wallet is already sitting on a $20.64 million unrealized loss. Why does this matter? Notably, all three assets the trader bet on are utility-driven projects with solid fundamentals. Yet, their recent lag highlights a clear disconnect between fundamentals and short-term market rotation. In this context, is trading altcoins becoming riskier?  Simply put, during Bitcoin’s chop phase, are investors increasingly favoring speculative, “high-risk/high-reward” plays over fundamentally strong tokens, signaling a deeper divergence in overall market behavior? Market signals point to a favorable altcoin setup Early signals suggest the altcoin market might be finding a bottom. On-chain, the Altcoin Season Index has been chopping in the 35-40 range over the past week, marking a phase seen as a setup for market rotation. At the same time, technical indicators are showing similar support.… The post Altcoin market eyes a bottom as Bitcoin consolidates – Is it time to rotate? appeared on BitcoinEthereumNews.com. The crypto market is on the lookout for early signs of a bottom. To start with, December opened with some serious volatility. Mid-week, a 5% drop in the TOTAL crypto market cap wiped out almost all the early-week momentum, pulling back from the brief rally to $3.17 trillion. Against this backdrop, Bitcoin’s [BTC] sideways chop looks like the usual cooling-off phase. Historically, when BTC enters consolidation, liquidity starts rotating into altcoins. Will the same playbook apply this time as well? A $300 million bet just raised the stakes for altcoins Traders have started capitalizing on the current market indecision. Supporting this, Coinalyze’s Open Interest (OI) shows a 1.85% jump in OI across all crypto assets excluding Bitcoin and Ethereum [ETH], pushing the total to $17 billion. This brings their combined OI share to 27.61%. Put simply, leverage is flowing back into altcoins. Adding to that, Arkham Intelligence recently flagged a wallet that opened a $300 million long position split across ETH, Ripple [XRP], and Hyperliquid [HYPE]. Source: X However, the wallet is already sitting on a $20.64 million unrealized loss. Why does this matter? Notably, all three assets the trader bet on are utility-driven projects with solid fundamentals. Yet, their recent lag highlights a clear disconnect between fundamentals and short-term market rotation. In this context, is trading altcoins becoming riskier?  Simply put, during Bitcoin’s chop phase, are investors increasingly favoring speculative, “high-risk/high-reward” plays over fundamentally strong tokens, signaling a deeper divergence in overall market behavior? Market signals point to a favorable altcoin setup Early signals suggest the altcoin market might be finding a bottom. On-chain, the Altcoin Season Index has been chopping in the 35-40 range over the past week, marking a phase seen as a setup for market rotation. At the same time, technical indicators are showing similar support.…

Altcoin market eyes a bottom as Bitcoin consolidates – Is it time to rotate?

2025/12/07 19:00

The crypto market is on the lookout for early signs of a bottom.

To start with, December opened with some serious volatility. Mid-week, a 5% drop in the TOTAL crypto market cap wiped out almost all the early-week momentum, pulling back from the brief rally to $3.17 trillion.

Against this backdrop, Bitcoin’s [BTC] sideways chop looks like the usual cooling-off phase. Historically, when BTC enters consolidation, liquidity starts rotating into altcoins. Will the same playbook apply this time as well?

A $300 million bet just raised the stakes for altcoins

Traders have started capitalizing on the current market indecision.

Supporting this, Coinalyze’s Open Interest (OI) shows a 1.85% jump in OI across all crypto assets excluding Bitcoin and Ethereum [ETH], pushing the total to $17 billion. This brings their combined OI share to 27.61%.

Put simply, leverage is flowing back into altcoins. Adding to that, Arkham Intelligence recently flagged a wallet that opened a $300 million long position split across ETH, Ripple [XRP], and Hyperliquid [HYPE].

Source: X

However, the wallet is already sitting on a $20.64 million unrealized loss.

Why does this matter? Notably, all three assets the trader bet on are utility-driven projects with solid fundamentals.

Yet, their recent lag highlights a clear disconnect between fundamentals and short-term market rotation.

In this context, is trading altcoins becoming riskier? 

Simply put, during Bitcoin’s chop phase, are investors increasingly favoring speculative, “high-risk/high-reward” plays over fundamentally strong tokens, signaling a deeper divergence in overall market behavior?

Market signals point to a favorable altcoin setup

Early signals suggest the altcoin market might be finding a bottom.

On-chain, the Altcoin Season Index has been chopping in the 35-40 range over the past week, marking a phase seen as a setup for market rotation. At the same time, technical indicators are showing similar support.

The TOTAL2 market cap (ex-BTC) has gained about 3.6% over the last two weeks, hovering near $1.20 trillion. Together, these on-chain and technical cues hint that altcoins could be gearing up for renewed movement.

Source: CryptoQuant

In short, the market seems to be back in a buying zone. 

CryptoQuant’s Darkfrost shows that altcoins’ 30-day trading volumes are still below the yearly average, suggesting selling pressure is light. For traders, this makes it a favorable setup to gradually accumulate altcoins.

Layer in the sideways-chopping Altcoin Season Index, the steadily rising TOTAL2, bullish on-chain metrics, and weekly charts highlighting the top three gainers as solid Layer-1 chains, and the setup looks constructive.

In this context, the $300 million position appears more like a strategic bet.


Final Thoughts

  • Bitcoin’s sideways consolidation and a surge in altcoin Open Interest suggest liquidity is rotating back into altcoins.
  • On-chain metrics, including the Altcoin Season Index and TOTAL2, alongside a $300 million strategic trade, point to favorable conditions for gradual accumulation.
Next: Worldcoin team triggers panic after shifting $25.6 mln WLD: Will $0.55 hold?

Source: https://ambcrypto.com/altcoin-market-eyes-a-bottom-as-bitcoin-consolidates-is-it-time-to-rotate/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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