The cryptocurrency market is showing signs of stabilization after a significant wave of liquidations exceeding $1.7 billion within a 24-hour period. This substantial deleveraging event, which occurred on September 22, 2025, has prompted traders who were previously focused on speculative altcoin plays to reassess their risk. Despite recent volatility, key digital assets are demonstrating resilience, with Bitcoin trading above the $113,000 mark and Ethereum maintaining a position near $4,200, indicating underlying strength in the market’s major players.
Market analysts at QCP Capital have observed a shift in investor sentiment and portfolio allocation. The recent surge in speculative tokens, which fueled an “altcoin season” narrative, appears to have subsided. Consequently, the Altseason Index has seen a notable decline, falling from approximately 100 to 65 points. Concurrently, Bitcoin’s dominance has climbed above 58%, while Ethereum’s market share has contracted to 12%. This trend suggests a potential reallocation of capital back towards more established cryptocurrencies.
Despite recent price adjustments, institutional interest in the cryptocurrency market remains robust. QCP Capital highlights that significant entities, including Strategy and Metaplanet, continue to accumulate Bitcoin holdings. Furthermore, consistent inflows into spot Bitcoin Exchange-Traded Funds (ETFs) over the past week underscore a sustained demand for digital assets, particularly during periods of market correction.
Examining price action in September, Bitcoin has still managed to achieve a gain of over 4% for the month, defying its historical trend of often being a weaker period for crypto markets. This performance, coupled with anticipation for October, has led to increased interest in call options with price targets ranging between $120,000 and $125,000. QCP Capital forecasts that after a period where altcoins commanded attention and Bitcoin experienced low volatility within the $110,000-$120,000 range this quarter, the focus is likely to pivot back to Bitcoin following the recent market shake-up and as October progresses.
The broader economic environment may also play a crucial role in shaping the market’s trajectory. Should inflationary pressures moderate, it could pave the way for further interest rate reductions, thereby increasing liquidity in the fourth quarter. This scenario could act as a catalyst for renewed upward momentum in Bitcoin’s price.
Concerns about market stability persist, however. Caroline Mauron of Orbit Markets commented to Bloomberg that while the market has calmed after the recent sharp pullback, an underlying nervousness remains. She suggests that a breach of key support levels, such as Bitcoin falling below $110,000 or Ethereum below $4,000, could trigger another wave of selling pressure.
Griffin Sears of FalconX views the recent decline as a necessary deleveraging event rather than a fundamental shift in market sentiment, emphasizing that high leverage continues to present the potential for significant price swings. He anticipates that Bitcoin’s future performance will be increasingly influenced by equity market movements and macroeconomic indicators. Data from Bloomberg’s options market indicates that traders are actively hedging against potential volatility, placing bets on both downside protection for Bitcoin around $95,000 and upside potential exceeding $140,000.
In related analysis, researchers at CryptoQuant have noted that the current cycle of altcoin rotation appears to be nearing its conclusion.
Michael combines data-driven research with real-time market insights to deliver concise crypto and bitcoin analysis. He’s passionate about uncovering on-chain trends and helping readers make informed decisions.