2026-01-13 16:34:29

Recently, market sentiment has shown a clear shift. As risk appetite gradually declines, those small-cap tokens are experiencing a massive capital outflow. Industry market makers' data is even more telling — the explosive cycle of altcoins, which used to last 40 to 60 days, has been compressed to about 20 days. What does this mean? Rapid rise, rapid fall, and very few people dare to take the risk.

Here’s more sobering data. Since October last year, the open interest in altcoin futures has shrunk by a full 55%. What does this imply? Over $40 billion in trading positions have simply evaporated. Both institutions and retail investors are asking the same question: instead of betting on altcoins doubling, it’s more reliable to stick with Bitcoin. Capital is making a choice — flowing into more certain assets and leaving behind those small tokens with high volatility but enormous risk.

BTC4,06%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
7
Repost
Share

Comment

0/400

HorizonHunter

· 12h ago

20-day cycle? Directly in the ICU now, what's the point of playing around 40 billion evaporated, really ruthless, retail investors have all moved to Bitcoin Altcoins are now just a game of hot potato, no one dares to be the last to take the bait This round has indeed been a major differentiation, reliable projects survive, trash projects die Bitcoin is the ultimate answer Funds are now smart, not gambling with you anymore

View OriginalReply0

GamefiHarvester

· 12h ago

20-day cycle? Or just be a bagholder --- 400 billion evaporated, this is the fate of gamblers --- Regret buying the counterfeit coins, haha --- No wonder no one has been talking about small-cap coins lately, everyone has moved to Bitcoin --- After this data came out, those who want to go all-in on altcoins should reflect --- 55% of open contracts are gone, that's pretty harsh --- Quick in and out, who can catch this move? --- Funds are flowing into Bitcoin, indicating everyone has seen through it --- From 60 days down to 20 days, is this accelerating the harvest? --- Holding Bitcoin is really much better, small-cap coins are too刺激

View OriginalReply0

MetaNeighbor

· 12h ago

Altcoins cycle every 20 days, who can withstand that... Really, anyone still daring to play with small-cap coins needs to have mental preparation. 400 billion evaporated, the funds are being smart, Bitcoin is still the safest. Fewer and fewer bagholders, this cycle doesn't seem to be going well.

View OriginalReply0

CommunityJanitor

· 12h ago

Altcoin cycles have shortened from 60 days to 20 days, this is really accelerating the death... The feeling of no one taking the bait is too hopeless, directly fast-forwarding to the limit down $40 billion is gone just like that, no wonder everyone is rushing to cling to Bitcoin It seems the story for 2025 has become simpler, just two choices: either go all-in on mainstream coins or stay in USD This time feels truly different, before you could gamble for a few months to double your money, now is it game over in 20 days? Human nature, when the huge profits disappear, everyone disperses... Capital flowing back into Bitcoin indicates the market is starting to cool down, which may not be a bad thing The era of small coins may really be coming to an end

View OriginalReply0

ImpermanentPhilosopher

· 12h ago

This is the market teaching people how to make choices. 40 billion evaporated, it’s painful just to watch. --- In just 20 days, it crashed again. Still sleeping peacefully holding BTC. --- Altcoins have really become a harvesting tool for the little guys, and some people are still dreaming. --- Funds have already fled. Still want to take over the position? Dream on. --- From 60 days compressed to 20 days, this move has cut off all escape routes. --- Institutions are all working on the same problem, retail investors are still dreaming of doubling their money. --- 55% of the contract size has shrunk, what does that mean? Everyone is scared.

View OriginalReply0

Ser_This_Is_A_Casino

· 12h ago

This wave of capital fleeing small coins is actually quite normal. Who still dares to bet on a 20-day cycle... 40 billion evaporated, and those who bought the dip are all cannon fodder. Bitcoin is the real king; everything else is gambling. Short-term assets can't be held onto at all; they can reverse in just a week. The hype cycle for altcoins has been cut from 60 days to 20 days, which is essentially eliminating the retail investors. Stop messing around; just stick to mainstream coins. The risk is much lower.

View OriginalReply0

GasFeeVictim

· 12h ago

Ha, now I finally understand. I should have run earlier. A 20-day cycle, it's hilarious. What kind of game is this? Another story of "flowing into BTC," but this time it's real. Altcoin cycles have been crushed; institutions saw through it long ago. 40 billion evaporated—who's picking up the pieces? Not me anyway. The bagholders are probably going to cry this time. Contracts exploded, spot markets are fleeing—this is the reality. I should have just gone all-in on Bitcoin from the start. Funds are always smart, but unfortunately, we are not.

View OriginalReply0