Is this round of alt season over? Market analysis: Bitcoin is absorbing most of the cash inflow into Crypto Assets.

Question

The FxPro analyst team stated in an article on July 2 that Bitcoin is absorbing most of the funds entering the digital asset market. In the first half of 2025, its share in the cryptocurrency market structure increased by 10 percentage points, reaching 65%. This is the highest level since January 2021. In contrast, since the beginning of this year, the market capitalization of alts has decreased by 300 billion dollars. Due to developed infrastructure, support from the White House, and regulation, larger Tokens are replacing smaller competitors.

The MarketVector Digital Asset 100 Small Cap Index covers the lower-ranked portion of the 100 largest digital assets. The index doubled in value after Donald Trump was elected in November. However, it subsequently gave back all its gains and fell by 50% in 2025.

On the other hand, Bitcoin has risen nearly 14% since January and reached an all-time high in May. Crypto Assets are benefiting from capital inflows into specialized Exchange Traded Funds (ETFs) as well as a global high-risk appetite.

The only competitor to Bitcoin is stablecoins. The legislation regulating the circulation of stablecoins passed by the U.S. Congress is increasing investor interest in this type of digital asset. Just in the first half of this year, the market capitalization of stablecoins grew by $47 billion. Not only banks, but even large companies like Amazon are exploring opportunities to implement stablecoins.

Bitcoin shows little interest in restoring its correlation with U.S. stock indices. The S&P 500 and Nasdaq indices reached all-time highs in June, but Bitcoin is in no rush to achieve this goal. During the armed conflict in the Middle East, the connection between traditional markets and Crypto Assets was severed. Currently, this digital asset leader is cautiously watching the arrival of July 9, when the White House's 90-day tariff extension will expire.

The escalation of the trade war will increase the risk of a pullback in U.S. stock indices. U.S. Bank pointed out that the bubble in the U.S. stock market continues to expand. Once the bubble bursts, all risk assets will be impacted.

The cautiousness in the Bitcoin market is not surprising. On the contrary, the new highs in the S&P 500 index will give Bitcoin bulls the opportunity to set new historical highs.