Retail traders rotated into Bitcoin and Ether after October liquidation, Wintermute says

Wintermute said retail traders spooked by the massive October liquidation event fled back to major cryptocurrencies Bitcoin (BTC) and Ether (ETH), dashing hopes for an altcoin season, in its "Digital asset OTC market 2025" report released on Tuesday. The report says that since around 2022 retail investors had been net sellers of majors and preferred altcoins, but that pattern broke in 2025.

Wintermute called the October 10 liquidation event and market crash a moment that "marked a clear inflection point," accelerating retail's rotation back into Bitcoin and Ether; data showed retail reduced exposure to majors at the time but quickly pivoted back after the record leverage flush.

"This shows the immediate defensive posture following the liquidation shock and growing concerns of contagion and an imminent bear market," the firm wrote, adding that by year-end retail positioning had converged with institutional investors, "prioritizing liquidity and resilience over peripheral risk." According to Wintermute, the move back into majors prevented any altcoin season and left altcoins to "materially underperform" in 2025.

Key Topics

Crypto, Bitcoin, Ether, Wintermute, Altcoin Season, Retail Traders