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  3. Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum

Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum

Altcoin season may be starting as capital shifts from Bitcoin, driven by regulatory clarity and rising DeFi activity.

Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum
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Crypto Rotation Alert- Is This the Start of the 2025 Altseason?

Crypto Rotation Alert– The long-awaited altcoin revival may finally be unfolding. According to Sygnum Bank’s Q3 2025 Investment Outlook, improving regulatory clarity, rising liquidity, and surging on-chain activity could be fueling the next big crypto rotation.

Regulatory Clarity Fuels Confidence

Earlier this year, geopolitical tensions and U.S. fiscal instability triggered a sharp sell-off in the altcoin market. But that trend may be reversing. Sygnum believes the tides are turning as clearer regulations begin to favor altcoins with real-world use cases and sustainable token models.

Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum

The bank highlights that Bitcoin dominance—which soared to its highest levels since 2021—has now dropped more than 6%, a strong signal that capital is flowing back into altcoins.

Bitcoin and Ethereum Remain Strong

Despite capital rotation, Bitcoin remains a powerhouse. BTC reached an all-time high above $123,000 on July 14, driven by a persistent supply-demand imbalance. Bitcoin spot ETFs now manage over $160 billion in assets, with more than 110,000 BTC added last quarter alone.

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Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum

Ethereum is also gaining ground. Following its Pectra upgrade, staking caps were raised, exchange balances fell, and institutional demand surged. With the SEC confirming that ETH staking does not qualify as a security, Ether has now broken out of its long-term downtrend.

DeFi and DEX Markets See Explosive Growth

The decentralized finance (DeFi) sector is booming. DEXs now command 30% of all spot trading, fueled by memecoin hype and rising usage on platforms like PancakeSwap and PumpSwap. Meanwhile, DeFi lending TVL hit $70 billion, and liquid staking now represents over 30% of all ETH supply.

According to Sygnum, the market is shifting fast—and altcoins may finally be taking center stage.

Bitcoin and Ethereum Whale Buying Signals Strong Institutional Confidence

Crypto Rotation Alert: Capital Flows from Bitcoin to Altcoins, Says Sygnum
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