Bitcoin News Today: Gold's Collapse Ignites Altcoin Rotation as Bitcoin Stalls in Key Range

Altcoin Frenzy Looms as Ethereum's Resistance Flip Signals Massive Capital Inflow from Stocks and Gold

The cryptocurrency market is on the cusp of a potential shift, with Ethereum (ETH) forming a bullish technical pattern and Bitcoin (BTC) absorbing record inflows as gold's recent collapse spurs rotation into risk assets. While Bitcoin remains mired in a narrow range ahead of a critical October performance benchmark, on-chain data and investor sentiment suggest a broader reallocation of capital is underway, with altcoins poised to benefit.

Bitcoin, which has struggled to extend gains from its "Uptober" rally, traded near $111,300 as of press time, hovering within a $107,000–$111,500 range. The flagship cryptocurrency is down 2.3% from its monthly open, raising concerns about a negative October performance-a rarity in bull cycles. Historical data from CoinGlass indicates Bitcoin typically gains around 20% in October during strong market years, targeting $130,000. However, the U.S. spot Bitcoin ETFs saw a rebound in inflows on October 21, with BlackRock's iShares Bitcoin Trust (IBIT) leading the charge with $210.9 million in net inflows, according to a CryptoNews analysis.

Ethereum, meanwhile, has drawn attention as a potential breakout candidate. The second-largest cryptocurrency traded at $3,957 after falling 6.5% since the month's start, but on-chain indicators point to a "triple bottom" pattern forming around $3,750–$3,800, signaling strong support, according to a CryptoNews report. A break above $4,000 could validate a reversal setup, with near-term targets near $4,280. Despite ETF outflows—ETH ETFs recorded $128 million in net outflows on October 23—Glassnode data shows large holders are accumulating, suggesting a possible rebound, as the same CryptoNews report observed.

The rotation into crypto follows a dramatic selloff in gold, which plummeted 6.3% in a single day-the sharpest drop since April 2013. Analysts attribute the gold exodus to profit-taking after a record rally, with capital now flowing into Bitcoin and altcoins. "Bitcoin is only the first stop after a massive gold sell-off," said one expert, noting Bitcoin's dominance has dipped from nearly 60%, indicating a shift toward smaller cryptocurrencies, according to a GlobePRWire report.

However, the expected "altcoin season" has yet to materialize. While Bitcoin ETFs attracted $20.33 million in inflows on October 23, Ethereum ETFs saw outflows of $128 million, and the Altcoin Season Index remains at 24, favoring Bitcoin, according to a Yahoo Finance analysis. CryptoQuant data highlights Bitcoin's continued dominance in futures trading, with Binance's October volume reaching $543.33 billion-a 30% increase from September-suggesting institutional confidence in BTC's breakout potential, as the Yahoo Finance piece also noted.

Amid the uncertainty, Digitap ($TAP), a project positioning itself as the first "omnibank" merging crypto and fiat, has emerged as a potential beneficiary. With a presale raising over $900,000 and a beta app allowing users to transact in both crypto and traditional currency, Digitap's proponents argue it could capitalize on the altcoin rotation. The project's VISA-powered crypto card and AI-driven cross-border payment system aim to bridge traditional and digital finance, a feature analysts say could drive adoption as risk-on sentiment builds, the GlobePRWire report added.

The broader market remains cautious, with the Crypto Fear and Greed Index at 29-its lowest since early 2025-reflecting heightened uncertainty amid U.S.-China tensions and geopolitical risks, as reported by CryptoNews. Yet, technical indicators and on-chain activity suggest a shift is imminent. "Liquidity rotation has started," said Crypto influencer Mister Crypto, predicting a "massive breakout" for altcoins if the $1.46 trillion market cap level is breached, the GlobePRWire piece concluded.