institutionalization

Bitcoin currently trades 83% above its November 2021 all-time high, while the broader altcoin market has gained just 6% over the same period—the widest performance gap in crypto history. This divergence reflects a fundamental structural shift in how capital flows through digital asset markets.

Institutional money entered crypto through spot Bitcoin ETFs, which absorbed $732 billion in new capital during 2025 according to Grayscale. Unlike retail-driven cycles where gains in $BTC and $ETH eventually rotated into smaller tokens, this time liquidity stayed concentrated at the top. The CMC Altcoin Season Index currently sits at 17 out of 100—well below the 25 threshold that signals Bitcoin season. In fact, 83% of altcoins have underperformed Bitcoin, with median token drawdowns reaching 79%.

Wintermute's research shows altcoin rallies now average just 20 days compared to 60-day runs in previous cycles, while market breadth has narrowed significantly. Token unlock schedules, fragmented narratives, and regulatory uncertainty have further pressured altcoin performance even as Bitcoin consolidates institutional legitimacy.

#bitcoin #altcoins #CryptoMarkets #MarketDivergence #Institutionalization