While Bitcoin ETFs are rapidly attracting hundreds of billions of dollars, the altcoin market is quietly shrinking. As an observer who has been in the crypto space for many years, I have seen the frenzy of the altcoin seasons in 2017 and 2021—whenever Bitcoin rises, hot money immediately flows into various altcoins, and the entire market goes crazy. But now, everything has changed.

In the past six months, Bitcoin's market share has surged to 64%, a new high since January 2021. Meanwhile, the altcoin market has evaporated over $300 billion. Behind this divergence actually reflects fundamental differences among market participants.

Institutions and retail investors have become two completely different species. Institutional investors are heavily entering through compliant channels like Bitcoin spot ETFs, viewing Bitcoin as digital gold for allocation, and as a long-term store of value. According to data, institutions allocate 67% of their crypto holdings to mainstream assets, while retail investors only allocate 37%—a 30 percentage point difference, a new high in history.

What are retail investors still doing? They are still dreaming of finding the "next Bitcoin," chasing Meme coins, speculating on high-risk altcoins, and trying to replicate the wealth explosion stories of the past. But in the current market environment, this approach is becoming increasingly dangerous.

Why is the altcoin season so delayed? Traditional theory says that when Bitcoin rises, excess funds will naturally flow into altcoins. But this time, it’s different; market rules have been rewritten. Bitcoin’s siphon effect is stronger than ever before.