• Altcoins have been hammered by nearly $1 billion in long liquidations since the Bitcoin ETF launch.
• As BTC consolidates demand near new highs, altcoins remain trapped in a speculative long squeeze.

Bitcoin dominance [BTC.D] has done what it always does in a bull market, soaking up liquidity and starving altcoins. 

Even as Bitcoin [BTC] printed a new all-time high, mega-caps like Ethereum [ETH], Solana [SOL], and Ripple [XRP] couldn’t keep up. Forget new highs, most large caps couldn’t even flip key resistance levels.

But under the hood, the data tells an even sharper story.

Before the 2022 bear market hit, during the 2021 cycle, Bitcoin topped out around $69,000 in November, and altcoins pretty much followed the move. 

Case in point: Ethereum hit its all-time high at about $4,891, Solana peaked near $236, Binance Coin [BNB] got up to $671, and even Dogecoin [DOGE] made it to $0.73.

All in all, liquidity flowed hot and heavy across the board, fueling a broad-based rally. This synchronized upswing? That’s the OG “altseason” in full effect. Fast-forward to now, and that synchronized rotation is missing.

What’s changed? CryptoQuant’s on-chain metrics reveal a clear divergence. Since the launch of the Bitcoin ETF, liquidation behavior has split sharply between BTC and the rest of the market. 

On Binance, Bitcoin’s Cumulative Liquidation Delta (CLD) shows shorts got crushed by roughly $190 million, meaning bears were getting squeezed hard as BTC climbed higher.

Meanwhile, altcoins played a completely different game. Long liquidations dominated the scene, outpacing shorts by nearly $1 billion. 

This tells us traders were betting big on an “altseason” that never showed up, and paid the price for it. Since December 2024, this gap has only grown wider.

While BTC keeps steamrolling shorts and breaking new ground, leveraged altcoin bulls are getting liquidated left, right, and center as capital stays locked confidently into Bitcoin.

It’s no surprise the big-name alts didn’t follow Bitcoin to new highs. But even without hitting that level, the damage was done. Alts still took the hit. Some even posted double-digit drawdowns. 

Why? Because when BTC flirts with local tops or breaks key resistance, capital usually starts to trickle into alts – traders trying to front-run the elusive “altseason.”

But this time, that rotation got rug-pulled. No follow-through, no structural breakout. Instead, just speculative inflows and overexposed longs. 

And it shows. Since April 2024, altcoins’ Cumulative Liquidation Delta (CLD) has been consistently skewed toward long liquidations.

Put simply, as BTC approaches new highs, structural demand consolidates around it. Altcoins? Left out in the cold. That makes any capital flowing into high-caps like ETH, SOL, or XRP more speculative.

What comes next? Liquidation cascades. Failed breakouts. Resistance levels that act like brick walls. Basically, it’s a classic liquidity loop. 

So next time Bitcoin pushes into price discovery, betting on a full-blown 2021-style “altseason” might be jumping the gun.

Unless these mega-caps attract organic bid support, a fresh all-time high remains a tall order.