Bitcoin shows bottom signals as altcoin outflows reach $209B

TLDR

• Altcoins faced US$209B net outflows since January 2025, excluding BTC, ETH.
• Outflows reflect structural rotation toward liquidity, not temporary volatility spikes.
• Demand vacuum thins two-way markets, increasing slippage and harming price discovery.

Since January 2025, tokens excluding Bitcoin (BTC) and Ether have seen US$209 billion in cumulative net selling, based on data from CryptoQuant as reported by Crypto‑Economy. The figure points to persistent, directional outflows rather than episodic volatility and aligns with a structural rotation narrative.

The scale and duration suggest a demand vacuum in smaller tokens as market breadth narrows toward the most liquid assets. With fewer natural buyers, two‑way markets thin out, slippage risk rises, and price discovery deteriorates across long‑tail assets.

Immediate impact: rotation to Bitcoin and stablecoins; liquidity thins in altcoins

Capital has rotated toward Bitcoin and into stablecoins, as reported by Cointelegraph, consistent with risk‑off positioning and a preference for deep liquidity and clearer compliance pathways. Ether is excluded from the headline dataset but remains part of the large‑cap liquidity core that anchors broader crypto pricing.

Bitcoin has recently flashed rare bottom‑type signals in historical context, yet macro headwinds are keeping a sustained rebound uncertain, as reported by Decrypt. Such conditions can coexist with weak altcoin demand if capital concentrates in the benchmark asset and sidelines higher‑beta exposure.

Institutional participation appears more selective, favoring networks with demonstrable usage, revenues, and clearer governance. “2025 has been a repricing year for institutional capital, markets are being highly selective about which projects merit inflows,” said Jamie Coutts, analyst at Real Vision.

Flow drivers: rotation to Bitcoin and stablecoins; institutional selectivity

The rotation toward Bitcoin and stablecoins reflects liquidity preferences, institutional custody readiness, and tighter risk controls after an extended drawdown. For many altcoins lacking proven utility or sustainable economics, this filtering has created a durable demand gap and contributed to thinner spot and derivatives depth.

Altcoins excluding Ether are experiencing the strongest sell‑dominant phase in five years, according to Bloomingbit. The figures indicate limited evidence of broad accumulation in smaller tokens while retail participation has faded alongside shrinking market depth.

Derivatives positioning has cooled in parallel with spot rotations, which can suppress reflexive liquidity and dampen rebounds in the long tail. A sustained improvement likely depends on renewed risk appetite, clearer regulatory pathways, and evidence of real‑world traction at the protocol level.

At the time of this writing, Solana (SOL) trades near US$82.10 in the provided metrics, with sentiment described as bearish. Coinbase Global, Inc. shares recently changed hands around US$158.47 on Nasdaq, a neutral data point for crypto market infrastructure exposure.