Bitcoin News Today: Bitcoin Dominates Capital Flows as Altseason Remains On Hold

Bitcoin continues to outperform alternative cryptocurrencies, with signs of an "altseason" still on hold. Recent market dynamics show that while large-cap altcoins such as Ethereum have experienced significant gains, Bitcoin remains the dominant force in capital flows within the crypto market [1]. This trend diverges from historical altseason patterns, where altcoins typically outperform Bitcoin following a peak in the latter’s market dominance [2].

Market metrics indicate that Bitcoin’s price has remained within a relatively stable range of $115K to $120K over the past week, with occasional peaks reaching $123K and an all-time high of $118K recorded on May 22, 2025 [3]. In contrast, Ethereum has seen a 16% rally in the past seven days, highlighting the uneven performance between major cryptocurrencies [4].

Analysts have observed that the traditional altseason cycle—defined by a shift in capital from Bitcoin to altcoins—has not yet materialized. While Ethereum has broken above key resistance levels and driven optimism, Bitcoin continues to attract the majority of inflows [5]. This suggests that the broader market remains cautious, with capital still concentrated in more established assets [6].

Implied volatility remains a key metric in gauging market sentiment. Bitcoin’s 7-day realized volatility has remained between 22–25% in recent weeks, even amid macroeconomic shocks like geopolitical tensions and regulatory updates [7]. Ethereum, on the other hand, has shown higher volatility, particularly during periods of sharp price increases, leading to an elevated ETH-to-BTC implied volatility ratio near five-year highs [8].

Derivatives markets also reflect this divergence. Bitcoin’s perpetual futures funding rates have consistently been positive, signaling bullish sentiment, while its short-tenor options have skewed toward at-the-money levels, indicating a neutral to slightly bullish outlook [9]. Ethereum options, by contrast, have shown a stronger skew toward out-of-the-money calls, suggesting increased demand for upside exposure [10].

Macroeconomic factors, including recent U.S. trade policy shifts, have influenced both equity and crypto markets. However, Bitcoin has not responded as strongly as traditional risk-on assets, further emphasizing its growing divergence from the broader financial markets [11]. Although regulatory developments such as the passage of the GENIUS Act and the proposed BITCOIN Act have sparked optimism, these have yet to translate into sustained altcoin outperformance [12].

As Bitcoin maintains its dominance and altcoins fail to sustain a breakout, the altseason narrative remains on hold. Investors are closely watching for signs that capital will rotate into altcoins, which could signal the start of a new bull phase for the broader crypto market. Until then, Bitcoin continues to serve as the primary barometer of market sentiment and capital flows in the digital asset space [13].

Source:

[1] This Week in Crypto, Full Written Summary: W2 August (https://app.santiment.net/insights/read/this-week-in-crypto-full-written-summary-w2-august-8845)

[2] Bybit x Block Scholes Quarterly Report: Altcoin season and the evolving role of Bitcoin

[3] Block Scholes x Bybit Crypto Derivatives July 25

[4] Block Scholes x Bybit Crypto Derivatives July 10

[5] Block Scholes x Bybit Crypto Derivatives July 16

[6] Bybit x Block Scholes Crypto Insights Report: Deep dive into US crypto regulations

[7] Block Scholes x Bybit Crypto Derivatives July 4

[8] Block Scholes x D2X: Stablecoin and Fiat-Denominated Options

[9] Block Scholes x Bybit Crypto Derivatives June 27

[10] Block Scholes x Bybit Crypto Derivatives June 4

[11] Block Scholes x Bybit Crypto Derivatives April 9 2025

[12] Block Scholes x Bybit Crypto Derivatives April 25 2025

[13] Block Scholes x Bybit Institution Report: Drivers and Sentiments Behind Ether’s Recent Breakout and How Far It Can Go