Bitcoin News Today: Bitcoin ETFs Redirect Capital, Stalling Altcoin Season's Arrival

Bitcoin's price dropped below $90,000 on December 1, 2025, marking its steepest monthly decline since mid-2021 as renewed risk aversion pushed investors out of digital assets and equities according to market analysis. The cryptocurrency's 5.2% 24-hour decline brought it closer to an eight-month low near $80,553, following a difficult November that saw it shed over $18,000 and record outflows from U.S. Bitcoin ETFs. Ether (ETH) mirrored the downturn, falling nearly 6% to $2,840, compounding a 22% monthly loss-the worst since February's 32% drop according to data. The broader crypto market lost over $1 trillion in value since hitting a peak of $4.3 trillion, with altcoins like XRP and Solana (SOL) also retreating 6.9–7.1% according to analysis.

The selloff triggered $637 million in leveraged position liquidations, driven by Bitcoin's intraday low near $85,700 according to reports. U.S. spot Bitcoin ETFs, which had dominated inflows earlier in 2025, recorded $3.48 billion in net outflows for November-their second-largest monthly redemptions. BlackRock's IBIT led the exodus with $2.34 billion in redemptions, while Fidelity's FBTC and Grayscale's GBTC lost $412.5 million and $333 million, respectively. Despite these outflows, Bitcoin's price held steady in the mid-$80,000s, suggesting underlying demand remained resilient according to market analysis.

The absence of a traditional "altcoin season" has left investors in limbo. Bitcoin's dominance index hovered near 58%, a threshold historically linked to capital rotation into smaller assets according to market data. However, the Altcoin Season Index remains at 22, far below the 75 threshold required to signal a full-blown altcoin rally according to analysis. Analysts attribute this to structural shifts in capital flows, with institutional investors increasingly accessing Bitcoin via ETFs rather than cascading into altcoins as in past bull markets according to market research.

While a delayed altcoin season is expected in 2026, it may lack the explosive gains seen in 2017 or 2021 according to market analysis. Ethereum, the second-largest cryptocurrency, is positioned to lead any potential breakout, trading near its previous all-time high of $4,800. Institutional infrastructure development and Standard Chartered's $8,000 price target for ETH if tokenization adoption accelerates suggest optimism for the top altcoin according to analysis. Solana, with its 0.15-second transaction times and growing institutional interest, is another candidate for outperformance according to market analysis.

The market's fragmentation has diluted capital, with 98% of total value concentrated in the top 100 projects despite thousands of alternatives according to market data. Projects with genuine utility, such as Ripple's XRP (up 347% year-to-date post-regulatory clarity), are seen as better positioned for disproportionate gains according to analysis. Meanwhile, MYX Finance (MYX) defied the broader slump, surging 24% amid rising open interest and volume spikes, signaling short-term liquidity optimism.

Looking ahead, Bitcoin ETFs and macroeconomic uncertainty will shape December's trajectory. The Federal Reserve's December FOMC meeting, occurring without the latest CPI data, creates a "blind flight" scenario where policy ambiguity could reignite volatility. Thin year-end liquidity and institutional portfolio rebalancing further amplify risks according to market analysis. However, if ETF inflows stabilize in the $50–100 million daily range, they could absorb daily miner issuance and provide structural support according to analysis.

Bitcoin's isolation from the broader crypto ecosystem, driven by ETF-driven capital flows, underscores the market's evolving dynamics. While a full-fledged altcoin season may still arrive in 2026, its success will depend on narratives with tangible utility rather than speculative frenzy.