The Alt Season Paradox: Why Bitcoin Still Holds The Crown

In August 2025, Bitcoin reached an all-time high of $124,000 before retracing to $108,000, while Ethereum surged 35% to $4,955 and stabilized near $4,350. Other altcoins also enjoyed strong rallies, pushing the altcoin season index to 50/100 — a clear sign that capital was rotating into alt assets. Yet Mark Wong, Head of Trading at Independent Reserve, insists Bitcoin remains the anchor of institutional portfolios.

Institutions Accumulate While Retail Takes Profits

Wong observed a bifurcated pattern: institutions steadily accumulating Bitcoin through OTC trades while early adopters cashed out profits. This divergence underscores Bitcoin’s maturing market structure and hints at a “price floor” built on institutional support. Independent Reserve’s Singapore Crypto Index shows 59% of investors still prefer Bitcoin, with 68% holding it in their portfolios.

Bitcoin As “Coca-Cola” Of Crypto

Wong compared Bitcoin to Coca-Cola: the original, enduring brand that defines the category. While altcoins may shine temporarily, Bitcoin continues to lead each cycle. Nearly 30,000 tokens launch daily, but Bitcoin remains unique as the first and most trusted decentralized digital asset.

Index Fund Mentality

Wong urges institutions to treat Bitcoin like an index fund — a compounding, credibility-building cornerstone of portfolios. Altcoins, by contrast, are likened to penny stocks: potentially high-reward but volatile and often short-lived. Research supports this, showing Bitcoin’s Sharpe ratio of 1.24 over the last five years, outperforming both gold and the S&P 500.

Institutional Vs. Retail Behavior

Wong highlighted the divide: institutions concentrate on Bitcoin and Ethereum due to liquidity and regulatory clarity, while retail investors chase altcoin pumps. In 2024 alone, individuals sold 525,000 BTC, while institutions and ETFs accumulated 831,000 BTC, reflecting a massive transfer of value into institutional hands.

Reading The Cycle

Historical cycles show Bitcoin dominance declines during bull peaks but rebounds when markets turn fearful. Wong advises dollar-cost averaging and patience, noting 57% of Singaporean investors who follow DCA report profits. Bitcoin’s resilience, he argued, proves its “digital gold” thesis, with stability reinforcing — not undermining — its store-of-value role.

The Long Game

Wong emphasized Bitcoin’s rise does not mean altcoins must fail. Ethereum’s strength benefits the ecosystem as a whole. His advice: follow institutional flows, not retail-driven narratives. Despite altcoin excitement, Bitcoin remains the foundation for long-term crypto investing.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.