The crypto market records a rotation of capital as Bitcoin holds key support above $88K while several altcoins register notable rebounds. This dynamic affects liquidity, derivatives and the dominance reading, offering information useful for product teams, compliance and institutional investors.
Bitcoin trades in a range near $91K–$93K after touching seven‑month lows below $90K, far below October’s peak above $126K. The recent correction caused roughly $20 billion in derivatives liquidations and contributed to a broader market capitalization loss that, in six weeks, reached about $1.2 trillion.
Among the extreme episodes, a large movement of 24,000 BTC —valued at more than $2.7 billion— triggered an immediate $100 billion drop in the market; the October 10 shock produced between $7–19 billion in liquidations and a $450–500 billion reduction in total capitalization.
These events have tightened operational liquidity and highlighted the sensitivity of leveraged positions to macroeconomic shocks and market infrastructure issues. The macro outlook remains conditioned by Fed monetary policy and economic data, with the market awaiting upcoming US employment figures that could alter the trend’s direction.
Altcoin rebound and risks for Bitcoin
The relative decline in Bitcoin dominance —from 61% to 58.8% and below its 50‑week EMA— coincides with a phase of selective revaluation in altcoins. Recent examples: Starknet (STRK) +24.99%, ELIZAOS +24.86%, MYX Finance (MYX) +17.98%, ArcBlock (AB) +13.69% and Gnosis (GNO) +12.86%; even certain culture tokens (meme coins) show double‑digit increases. The “altcoin season” index rose to 31, a sign of a possible temporary shift of risk appetite toward smaller and more specialized projects.
For product and compliance teams this implies two practical consequences: greater need for monitoring counterparty and liquidity risks in less liquid pairs, and review of KYC/AML and custody processes in light of volatile flows into lower‑cap assets. Additionally, sustained inflows of institutional capital into products like Ether ETFs and pending regulatory reviews on Solana and XRP ETFs add pressure on listing policies and custody requirements.
The coexistence of a Bitcoin that sustains technical support and a universe of altcoins with selective rebounds suggests a rotation phase rather than an exit from the crypto market. For institutional operators and compliance teams, the priority remains managing liquidity risk, derivatives exposure and custody controls in the upcoming window of macro data and regulatory decisions.
