Altcoins are experiencing a reduced flow on exchanges, raising interest in potential future changes in the market. Meanwhile, Bitcoin demonstrates strong dominance.
Decline in Altcoin Activity
According to CryptoQuant data, the average monthly inflow for altcoins has dropped to $1.6 billion, significantly below the yearly average of $2.5 billion. This low level is seen amidst historical indicators that preceded significant altcoin rallies.
Institutional Flows in BTC and ETH ETFs
ETF data indicates that institutional investors are actively investing in Bitcoin and Ethereum. On June 27, Bitcoin ETFs recorded net inflows of +2,117 BTC (approximately $225.9 million). Ethereum ETFs also significantly increased their volumes, receiving +5,527 ETH in a single day.
Speculative Behavior in Futures
Data from Glassnode suggests that Bitcoin futures volumes remain elevated even with declining demand in the spot market. This speculative behavior contrasts with smaller altcoin volumes, potentially indicating a shift in investments favoring altcoins if spot interest rises.
The decline in altcoin flows and the increase in Bitcoin dominance creates interesting market dynamics. It is important to monitor changes as they may impact future altcoin rallies.
