Bitcoin’s pullback is exposing a structural split across crypto: capital is clustering in the benchmark asset while everything else bleeds. Altcoins have recorded a cumulative $209 billion net sell imbalance, the most intense reading in five years. The figure tracks the cumulative buy sell difference for tokens excluding Bitcoin and Ethereum, and it has stayed negative for 13 months. Since January 2025, altcoins have seen 13 straight months of net selling on centralized exchanges, and analysts describe the flow as one way: out. Bitcoin traded near $67,806, down 46% from $126,025.
Sell Pressure Deepens as Bitcoin Dominance Rises Again
CryptoQuant analysts say the negative $209 billion reflects spot outflows, not a one week volatility episode. The operating reality is a demand vacuum on centralized exchanges, with buyers largely stepping aside. Coins continue to move at a loss, retail participation has faded, and capital rotation favors Bitcoin over smaller tokens. This differs from mid cycle pullbacks where risk returns. The report links the pressure to macro constraints and elevated U.S. interest rates, which typically pull liquidity away from risk on assets that lack predictable cash flows, feeding what it calls extreme fear.
That rotation has pushed bitcoin dominance to around 58% and dragged the Altcoin Season Index from 55 in January to 43. Dominance is rising, but the cycle setup is not a carbon copy of 2017 or 2021. The report notes prior peaks near 86% in late 2017 and above 70% in early 2021 were followed by sharp drops and broad altcoin surges, and says such levels have preceded major rotations even if timing is uncertain. In 2026, analysts describe a more institutional and ETF driven regime with selective themes drawing attention today overall.
Technicals offer a tentative breather, with some broader altcoin indices reclaiming key simple moving averages and the MACD flipping bullish. Relief signals matter, but the report stresses they do not equal capitulation or a confirmed bottom. Historically, durable reversals form after loss realization peaks and selling pressure exhausts, and current readings show stress without extreme washout. Market structure still shows Bitcoin leading while altcoins lag on BTC pairs, with ETH/BTC near multi year lows. The core question is shakeout or prolonged transition. Recovery depends on liquidity, macro signals, and Bitcoin’s next move.
