Bitcoin ETF inflows decline, while Ethereum dominates: Is the altcoin season coming?
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The cryptocurrency market, which suffered heavy losses in the past week, has seen a rebound in the last 24 hours, with altcoins like Ethereum (ETH), BNB, and Solana (SOL) leading the rise. Although Bitcoin (BTC) briefly broke through $96,000, the lack of sustained bullish sentiment led to a price pullback to around $94,000. With investors optimistic about a significant rise in the first half of 2025, the altcoin sector is experiencing increased gains.
Ethereum cash inflows surpass Bitcoin
On Monday, the Ethereum spot ETF attracted a net inflow of $130 million, bringing the total to $2.46 billion. At the same time, BlackRock's ETHA and Fidelity's FETH recorded inflows of $89 million and $46 million, respectively, indicating strong institutional interest in Ethereum. In contrast, Bitcoin's spot ETF experienced a net outflow of $1.1 billion, reflecting short-term market weakness for Bitcoin.
The upcoming altcoin season
Bitcoin's dominance on the weekly chart has broken, and it is expected that in the coming months, as whale investors heavily invest in altcoins, the performance of altcoins will significantly surpass that of Bitcoin. However, considering there are over 12,000 altcoins in the market, liquidity may face dilution, causing the performance of some altcoins to not meet the expected parabolic rise.
In the upcoming altcoin season, crypto investors should focus on DeFi tokens that solve real problems, popular memecoins, well-funded layer-2 tokens, and tokens centered around artificial intelligence. These areas are expected to stand out in the upcoming market.
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