Altcoin Volume Plummets Amid Tighter Monetary Conditions

The cryptocurrency market has seen a significant decline in altcoin volume since October 2025, with Binance's spot trading volume dropping by 80-85% to $7.7 billion.

This decrease in volume is attributed to the tightening of monetary conditions, which have caused traders to become more cautious with their investments. According to Justin d'Anethan, head of research at Arctic Digital, 'monetary conditions are meaningfully tighter than they were in previous cycles, and that shows in how conservatively people are positioned.'

The market's focus has shifted towards Bitcoin, which has settled around $70,400 and is up 1.6% over the past 24 hours. Experts predict that an 'alt season' similar to those seen in 2020 or 2021 is unlikely, with many expecting a shorter and more segmented market.

A move towards a price range of $120,000 to $130,000 for Bitcoin would trigger a 'wealth effect,' which could lead to a narrow rotation into higher-beta assets. However, this rotation would be thesis-driven and limited to specific themes such as infrastructure or real-world assets.