Big investors accumulate Bitcoin with $1.6 billion being purchased in just weeks, while retail traders stay on the sidelines.
Ethereum’s undervaluation attractes institutional interest with ETH ETF inflows surpassing Bitcoin for the first time.
Altcoins are currently undervalued compared to Bitcoin, with a predicted $1.4 trillion market cap by Q1 2025, driven by ETFs.
The altcoin market is changing, with big investors getting more confident in Bitcoin, while regular traders are staying out. According to Doctor Profit, a popular crypto expert, these big investors have bought $1.6 billion worth of Bitcoin in just 3-5 weeks.
This accumulation comes as retail traders have been panic selling for no clear reason, resulting in a shift in market dynamics. On-chain data from CryptoQuant supports this, highlighting that retail investors are predominantly holding USDT and staying out of the market.
Whales’ Activity and Rising Institutional Interest in ETH
Ethereum seems to be priced lower than it should be right now. Doctor Profit refers to a chart that shows Ethereum is undervalued but likely to rise in price soon. Additionally, big companies are investing in Ethereum, which shows a lot of interest in it.
Source: Doctor Profit(X)
This month alone, 245,000 ETH entered ETFs, and for the first time, Ethereum ETF inflows surpassed those of Bitcoin. Institutional interest in ETH longs has surged since November 5th, signaling the start of a potential altcoin season. This shift is a precursor to the market pricing in a massive altcoin ETF launch expected in 2025.
Market Cap Analysis and Altcoin Forecast
Doctor Profit also analyzes the market cap ratio between Bitcoin and altcoins. The market capitalization of altcoins was $984 billion in April/May 2021, whereas that of Bitcoin was $1.2 trillion. However, the current market cap ratio has reached an extreme 95%, with Bitcoin overvaluing the altcoin market.
Given that cryptocurrencies are cheap in comparison to Bitcoin, this suggests a bullish outlook for them. Doctor Profit estimates that by Q1 2025, the cryptocurrency market cap will jump to $1.4 trillion, supported by the anticipated debut of altcoin ETFs. As a result, the price of Bitcoin may rise above $130,000, confirming the earlier June prediction.
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