In 2025, cryptocurrency liquidity ceased to be evenly distributed, concentrating mainly in Bitcoin, Ethereum, and a few other major coins. This is noted in a report by Wintermute, as reported by The Block.
Over the past two years, the share of altcoins in total crypto liquidity has dropped from 15% to 12%. In their analysis, researchers utilized data from over-the-counter (OTC) markets.
The shift in capital flow structure has led to a departure from previous cyclical patterns, the company noted.
This situation has arisen amid the active entry of large institutional players into the market, including asset managers with ETFs. They primarily direct capital into more stable and time-tested cryptocurrencies.
Additionally, Wintermute pointed out a reduction in the duration of altcoin rallies. In 2025, the average growth period for "alternative coins" was about 19 days, compared to 61 days in 2024.
Experts also noted a change in how major counterparties execute trades. According to the company's analysis, institutional participants have shown less confidence in price direction and more tactical positioning based on news headlines.
Regarding derivatives, Wintermute highlighted the expansion of OTC structures. The use of CFDs is increasing as a capital-efficient way to access a broader range of underlying assets.
Options have also become a primary tool for managing crypto portfolios.
According to Wintermute, liquidity provision pathways are now as crucial as the overall risk appetite. Thus, future dynamics depend on whether capital will expand beyond a few major assets or remain concentrated in the upper market segment.
While renewed interest from retail investors could still attract new funds and stimulate altcoin rallies, Wintermute considers this scenario unlikely.
Recall that MN Fund founder Michael van de Poppe stated that Bitcoin could surpass the psychologically significant level of $100,000 by the end of January if it manages to hold above $92,000.