Analysts at Wintermute say altcoins lost an average of 5.69% last week amid a rotation of capital into BTC and ETH.

Market dynamics

Wintermute attributes the recent weakness in smaller tokens to intensified selling and a flow of funds toward Bitcoin and Ethereum among market participants.

The firm notes that capital concentration in larger tokens has reduced liquidity in lower‑cap markets and amplified price swings for mid‑cap altcoins.

Outlook for altcoins

According to Wintermute, a continued rise in Bitcoin may not be sufficient to lift many altcoins from sideways trading, leaving upside limited for smaller projects.

Conversely, a broader market decline could deepen losses among altcoins, producing steeper drawdowns compared with the relative resilience of Bitcoin and Ethereum.

Risk‑reward assessment

Analysts consider BTC and ETH more attractive on a risk‑adjusted basis versus most altcoins due to greater market depth and broader capital allocation.

Market participants are advised to account for liquidity differences and higher volatility when positioning in altcoins relative to the largest tokens.