Definition ∞ An altcoin retreat signifies a period where the market capitalization and price of cryptocurrencies other than Bitcoin experience a decline. This phenomenon typically occurs when investor capital shifts away from smaller-cap digital assets towards more established ones, often Bitcoin itself, or traditional safe-haven assets during times of market uncertainty. It reflects a reallocation of risk appetite within the digital asset ecosystem.
Context ∞ Altcoin retreats are closely watched as they can indicate broader market trends or a change in investor confidence towards speculative digital assets. News surrounding altcoin retreats often correlates with shifts in Bitcoin’s dominance and overall market volatility, providing crucial insights into capital flows and risk perception within the cryptocurrency space. Understanding this dynamic is vital for interpreting market movements and news reports.
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