Altcoin Sell Pressure Hits $209B: Is the BTC Rotation Complete?
The altcoin market is facing a liquidity crunch. New data shows a massive $209 billion imbalance in net spot demand since January 2025. As speculative interest wanes, the smart money appears to be rotating back into the market leader.
Key On-Chain and Exchange Insights
Negative Delta:
The cumulative buy-sell difference for altcoins (excluding ETH) has hit deep negative territory, signaling a lack of consistent spot buyers.
Volume Share Shift:
On Binance, BTC volume surged to nearly 37% of total activity in February, while altcoin volume dropped from 59% to 33%.
USDT Dominance at 8%:
Tether's market cap dominance is mirroring levels seen during the 2022-2023 bear market consolidation.
Market Outlook for Traders
This isn't necessarily a market bottom, but a redistribution phase. Traders should watch the USDT dominance chart closely; historical data suggests that a drop from the current 8% level often precedes significant BTC price rallies. For now, the "wait and see" approach in stablecoins seems to be the dominant strategy.