Bitcoin Updates: Altcoin Recovery Depends on Bitcoin's Performance, Ethereum Withdrawals, and Federal Reserve Ambiguity

Altcoins seem poised for a possible recovery, as several market signals and institutional actions point to a change in investor mood. Bitcoin’s share of the overall crypto market is once again testing a significant resistance point at 59% on the Ichimoku cloud—a level that has often marked pivotal moments in previous market cycles. Should

dominance not remain above this threshold, it may prompt a substantial movement of capital from Bitcoin into alternative cryptocurrencies, potentially sparking the long-anticipated "Altseason", according to . Experts have pointed out that a monthly close below 57%, together with the ETH/BTC ratio surpassing 0.041, would clearly confirm this transition. Both indicators are approaching these critical levels, hinting that the market could soon exit its current consolidation, as BeinCrypto observed.

Interest from major institutions in altcoins is also accelerating, with asset managers competing to introduce new investment vehicles. Swiss-based 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Hyperliquid (HYPE) ETF, joining Bitwise, which recently filed for a similar fund, according to

. This comes after strong debuts from new , , and ETFs, all of which have attracted notable trading activity. For example, Bitwise’s Solana Staking ETF (BSOL) launched with a record-breaking $55.4 million in trading volume on its first day, highlighting robust institutional demand for altcoin-related products, as reported. Offering a 7% annual staking return, this ETF is positioned as a link between conventional finance and decentralized blockchain networks, taking advantage of recent SEC guidance on staking.

Nevertheless, the altcoin surge is facing some obstacles.

ETFs, for instance, saw renewed outflows on October 29, with total net redemptions reaching $81.44 million, primarily from Fidelity’s FETH. This reversed two days of inflows and signals broader caution as Ethereum struggles to stay above $4,000. Technical signals such as the RSI and MACD indicate fading bullish strength, and if the $4,000 mark is lost, further drops to $3,850 or $3,750 could follow, as noted. At the same time, a significant Ethereum holder has sold 30,300 ETH since the start of 2025, realizing $99.36 million at an average price of $3,279. This whale still possesses 97,750 ETH, valued at $391 million, and their selling could impact both liquidity and price trends, as reported.

Market conditions are further complicated by uncertainty surrounding the Federal Reserve. On October 29, U.S. crypto ETFs experienced combined outflows of $550 million after Fed Chair Jerome Powell suggested that the recent 25-basis-point rate reduction might be the final cut for 2025. Bitcoin ETFs alone saw $470.71 million in withdrawals, led by Fidelity’s FBTC. Ethereum ETFs also faced redemptions, though BlackRock’s ETHA managed to attract new investments. The Fed’s dovish stance has increased volatility, with Bitcoin dropping below $110,000 and Ethereum falling to $3,904, according to

.

In spite of these hurdles, market analysts maintain a cautious optimism. The Altcoin Season Index, which tracks how altcoins perform compared to Bitcoin, remains close to the lows seen during the 2022 bear market, reflecting a "wait-and-see" approach among investors. Still, a decisive event—such as a drop in Bitcoin dominance or new regulatory clarity—could spark a surge of FOMO-driven buying, much like previous cycles, as BeinCrypto highlighted.