Bitcoin News Today: Altcoins' Rebound Hinges on Bitcoin's Struggle, Ethereum Outflows, and Fed Uncertainty

Altcoins appear to be on the cusp of a potential rebound, with key market indicators and institutional moves suggesting a shift in investor sentiment. Bitcoin's dominance, which measures its share of the total cryptocurrency market, is currently retesting a critical resistance level at 59% on the Ichimoku cloud-a threshold that has historically signaled turning points in market cycles. If Bitcoin dominance fails to hold above this level, it could trigger a large-scale rotation of liquidity from Bitcoin into altcoins, reigniting the long-awaited "Altseason", according to BeinCrypto. Analysts have highlighted that a close below 57% on the monthly chart, paired with the ETH/BTC ratio breaking above 0.041, would serve as a definitive confirmation of this shift. Both metrics are nearing these thresholds, suggesting the market may soon break out of its current consolidation phase, as BeinCrypto noted.

Institutional interest in altcoins is also gaining momentum, with asset managers racing to launch exposure products. Swiss firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) for a Hyperliquid (HYPE) ETF, joining Bitwise's recent application for a similar product, according to Yahoo Finance. This follows strong performances from new Solana, Litecoin, and Hedera ETFs, which have drawn significant trading volumes. Bitwise's Solana Staking ETF (BSOL), for instance, debuted with a record $55.4 million in first-day trading volume, underscoring institutional appetite for altcoin-linked products, as Coinotag reported. The ETF, which offers 7% annual staking yields, has been positioned as a bridge between traditional finance and decentralized blockchain ecosystems, leveraging recent SEC clarity on staking mechanisms.

However, the altcoin rally faces headwinds. Ethereum ETFs, for example, returned to outflows on October 29, with net withdrawals totaling $81.44 million, led by Fidelity's FETH product. This followed two days of inflows and reflects broader caution as Ethereum struggles to hold above $4,000. Technical indicators like the RSI and MACD suggest weakening bullish momentum, with further declines to $3,850 or $3,750 possible if the $4,000 level is breached, as Crypto.news reported. Meanwhile, a major Ethereum whale has sold 30,300 ETH since the start of 2025, realizing $99.36 million at an average price of $3,279. The whale still holds 97,750 ETH, worth $391 million, and its selling activity could influence market liquidity and price action, as Coinotag reported.

Market dynamics are further complicated by Federal Reserve uncertainty. On October 29, U.S. crypto ETFs saw combined outflows of $550 million as Fed Chair Jerome Powell hinted that the recent 25-basis-point rate cut might be the last of 2025. Bitcoin ETFs alone lost $470.71 million, with Fidelity's FBTC leading withdrawals. Ethereum ETFs also faced outflows, though BlackRock's ETHA managed to post inflows. The Fed's dovish pivot has added volatility, with Bitcoin dipping below $110,000 and Ethereum retreating to $3,904, according to Coinpedia.

Despite these challenges, analysts remain cautiously optimistic. The Altcoin Season Index, which measures altcoin performance relative to Bitcoin, remains near 2022 bear market lows, indicating a "wait-and-see" investor stance. However, a strong catalyst-such as a break in Bitcoin dominance or regulatory clarity-could trigger a wave of FOMO-driven buying, similar to past cycles, as BeinCrypto noted.