Bitcoin Booms, Altcoins Bust: $800 Billion Shift Leaves Retail Investors in the Dust

This article first appeared on GuruFocus.

Institutional investors are reshaping the crypto landscape and Bitcoin (BTC-USD) is walking away with the prize. A new report from 10x Research shows Bitcoin's rise has opened a neartrillion-dollar gap between itself and the rest of the digital asset market. Markus Thielen, CEO and head of research at 10x, said altcoins could be worth about $800 billion more if retail traders especially those in South Korea hadn't shifted their attention toward crypto-linked equities and listed vehicles hoarding Bitcoin. The new flow of capital suggests that investors are chasing exposure to digital assets through the stock market, not the coins themselves.

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For South Korea's traders, that pivot marks a sea change. Once the beating heart of global altcoin speculation, the country's exchanges used to see more than 80% of trading activity in smaller tokens far above the global average. In late 2024, daily crypto trading volumes in Korea even outpaced the Kospi, averaging $9.4 billion versus $7 billion. But since then, trading has dried up. According to 10x Research, volumes have collapsed as retail appetite fades, leaving altcoins struggling to attract fresh capital.

The timing couldn't be worse. Escalating USChina trade tensions recently triggered a sharp selloff that wiped out roughly $380 billion in crypto value with $131 billion of that loss concentrated in altcoins. Analysts at 10x believe this divergence could represent more than a passing downturn. Instead, they see a structural shift taking hold: Bitcoin's institutional narrative and growing presence in equity markets could be pulling liquidity away from altcoins for good, leaving retail investors watching from the sidelines of the next crypto boom.

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