Update: Rattled Retail Retreats To Bitcoin, Ether After October Crash

Retail traders fled to Bitcoin and Ether after the October crypto crash last year, adding to an already tough year for altcoins.

Retail traders spooked by the massive crypto liquidation event in October fled back to major cryptocurrencies as their hopes for an altcoin season were dashed, according to Wintermute.

Since around 2022, retail traders have been net sellers of majors such as Bitcoin (BTC) and Ether (ETH), preferring altcoins instead, but that pattern broke in 2025, according to Wintermute’s “Digital asset OTC market 2025” report released on Tuesday.

The October 10 liquidation event and market crash “marked a clear inflection point,” accelerating retail’s rotation back into Bitcoin and Ether, the firm said.

Data shows that retail investors were actively reducing exposure to the majors at the time, but quickly pivoted back into them after the record leverage flush.

Wintermute reported that by the end of the year, retail positioning had converged with institutional, “prioritizing liquidity and resilience over peripheral risk.”

The move back into majors prevented any altcoin season this cycle, and altcoins “materially underperformed” in 2025.

“Narratives continued to emerge, but failed to persist,” the report stated.

The average altcoin rally lasted roughly 19 days in 2025, down from around 60 days the year before, “reflecting reduced conviction and more tactical risk-taking,” Wintermute added.

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Source: CoinTelegraph