Retail traders spooked by the massive crypto liquidation event in October fled back to major cryptocurrencies as their hopes for an altcoin season were dashed, according to Wintermute.<\/p>\n
Since around 2022, retail traders have been net sellers of majors such as Bitcoin (BTC<\/a>) and Ether (ETH<\/a>), preferring altcoins instead, but that pattern broke in 2025, according<\/a> to Wintermute\u2019s \u201cDigital asset OTC market 2025\u201d report released on Tuesday.\u00a0<\/p>\n The October 10 liquidation event and market crash \u201cmarked a clear inflection point,\u201d accelerating retail\u2019s rotation back into Bitcoin and Ether<\/a>, the firm said. <\/p>\n Data shows that retail investors<\/a> were actively reducing exposure to the majors at the time, but quickly pivoted back into them after the record leverage flush.\u00a0<\/p>\n \u201cThis shows the immediate defensive posture following the liquidation shock and growing concerns of contagion and an imminent bear market.\u201d<\/p><\/blockquote>\n Wintermute reported that by the end of the year, retail positioning had converged with institutional, \u201cprioritizing liquidity and resilience over peripheral risk.\u201d\u00a0<\/p>\n The move back into majors prevented any altcoin season this cycle, and altcoins \u201cmaterially underperformed\u201d in 2025.\u00a0<\/p>\n \u201cNarratives continued to emerge, but failed to persist,\u201d the report stated.<\/p>\n The average altcoin rally lasted roughly 19 days in 2025, down from around 60 days the year before, \u201creflecting reduced conviction and more tactical risk-taking,\u201d Wintermute added.<\/p>\n Related: <\/strong><\/em>VanEck says policy clarity could make Q1 a \u2018risk-on\u2019 quarter<\/strong><\/em><\/a><\/p>\n This does not mean that there was a lack of narratives, but a market \u201cshowing clear signs of exhaustion,\u201d where rallies quickly faded.\u00a0<\/p>\n From 2022 to 2024, altcoin rallies typically lasted from 45 to 60 days with sustained narratives including memecoins<\/a> and AI. However, the median length of altcoin rallies in 2025 was just 20 days.\u00a0<\/p>\n \u201cThis led to altcoin rallies feeling like tactical trades rather than high conviction trends.\u201d<\/p><\/blockquote>\n While altcoins have yet to see any real momentum going into 2026, fears and panic over the October crash have subsided, leading to renewed confidence going forward.\u00a0<\/p>\n Earlier this month, Bitwise chief investment officer Matt Hougan said<\/a>, \u201cOne of the reasons I think we\u2019ve rallied to start this year is that investors have put October 10 in the rearview.\u201d<\/p>\n Total market capitalization is at its highest level so far this year, following a 10%, or $300 billion, gain since Jan. 1 to reach $3.34 trillion on Wednesday, according to CoinGecko.\u00a0<\/p>\n Magazine: <\/strong><\/em>Trump rules out SBF pardon, Bitcoin in \u2018boring sideways\u2019: Hodler\u2019s Digest<\/strong><\/em><\/a><\/p>\n <\/template><\/div>\n Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph\u2019s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https:\/\/cointelegraph.com\/editorial-policy<\/a><\/p>\n![\"bitcoins\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2026-01\/019bba61-b77f-7018-bdf5-2a04ddb32aaf.jpg\" "\\"bitcoins\\"")
Bitcoins Altcoin rallies lacked conviction<\/h2>\n
![\"bitcoins\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2026-01\/019bba61-ba93-7a12-a2ae-f74bbb630483.jpg\" "\\"bitcoins\\"")
<\/figcaption><\/figure>\nBitcoins October crash fears are subsiding <\/h2>\n