Wintermute Warns: Altcoin Season Is Dead as Bitcoin Dominance Soars

Group 1 - Bitcoin dominance is increasing as markets consolidate, leading to retail investors rotating out of altcoins and back into major assets like Bitcoin and Ethereum [1][4] - The broader crypto market has seen losses, with Bitcoin dropping 1.12% below $87,000 and Ethereum falling 1.5% near $3,000, while the NFT sector experienced declines over 9% [2] - Liquidations surged to approximately $600 million on Monday, with an additional $400 million each day on Wednesday and Thursday, indicating rapid forced exits from leveraged positions [3] Group 2 - Aggregate buying pressure is returning to major assets, supported by institutional flow, while retail traders are moving back to Bitcoin and Ethereum [4] - The market is trading choppy with thin liquidity as discretionary desks wind down into year-end, leading to abrupt downside moves that are increasingly self-contained [5] - Bitcoin and Ethereum are acting as primary risk absorbers in a market struggling under supply pressure and limited risk appetite, with options markets pricing a wide range of outcomes due to elevated implied volatility [6]