The altcoin market has fallen short of historical cycle projections by roughly $800 billion, according to Bloomberg, as retail investors increasingly turn to stock markets amid renewed interest in equities and weakening crypto sentiment.Retail Rotation Dampens Altcoin MomentumThe report cited data from 10x Research, which observed that retail traders — particularly in South Korea — have shifted focus to crypto-related stocks, reducing liquidity and speculative flows in the altcoin sector.In contrast, Bitcoin (BTC) continues to benefit from institutional capital inflows, underscoring the widening divergence between BTC and the broader altcoin market.South Korean Trading Activity SlumpsBetween November 5 and 28, 2024, South Korean crypto exchanges recorded an average of $9.4 billion in daily trading volume, compared with $7 billion on the Kospi stock index during the same period.Since then, crypto volumes have declined significantly.According to 10x Research, this retreat reflects waning enthusiasm among South Korean traders, historically among the most active participants in altcoin markets.Analysts warn that this trend could signal further downside for altcoins if retail sentiment fails to recover in the coming weeks.Macro Headwinds Add PressureThe recent U.S.–China trade tensions have also weighed heavily on risk assets, sparking a broad crypto market sell-off.Altcoins have borne the brunt of the decline, accounting for $131 billion of the $380 billion total crypto market cap contraction in recent weeks.Despite the pullback, Bitcoin has remained comparatively resilient, bolstered by continued ETF inflows and growing perception as a liquidity hedge amid global uncertainty.
Weatherly
