What happened?
Altcoin activity has been muted with the Altcoin Season Index stuck around the high 20s, meaning most tokens aren’t seeing much action. Trading has concentrated in a few liquid pairs and most coins are range-bound despite occasional rebounds earlier in the week. Bitcoin dominance sits near 59% and BTC is trading in a tight $110k–$116k range, which is keeping traders cautious.
Who does this affect?
Retail and institutional traders who chase mid- and small-cap altcoin gains are most affected because there’s little rotation of capital into those names. Market makers and liquidity providers benefit from concentrated trading in liquid pairs, while projects outside the top assets face thinner order books and low liquidity. Investors balancing risk in portfolios may be forced to favor Bitcoin and other large caps until dominance falls and altcoin flows pick up.
Why does this matter?
This matters because with liquidity clustered in top assets, price moves in altcoins are likely to be shallow and short-lived, increasing the risk of whipsaws for traders. Sustained Bitcoin dominance can delay a broader altcoin rally, meaning capital gains will be concentrated in a few assets and slowing market-wide momentum. As a result, allocations, trading strategies and market sentiment can stay conservative until dominance drops and we see stronger inflows into mid-cap altcoins.