The crypto market shows classic signs of rotation, with capital moving from Bitcoin to altcoins like Ethereum and Solana. An expert comments on the current situation.
Capital Shifts to Altcoins
According to Mohit Kumar, Head of Markets Research at Delta Exchange, Bitcoin struggles to hold positions around $114,000. This led to increased interest in the Ethereum ecosystem. Regulatory clarity provided by the Digital Assets Clarity Act is aiding altcoin growth, creating a capital rotation from Bitcoin to riskier altcoins.
Ethereum and Solana Lead the Rally
Ethereum remains central to this rotation, boosted by significant ETF inflows and a positive policy climate in the U.S. Solana shows growth thanks to the recovery of its DeFi and NFT ecosystems and attractive staking yields. Kumar noted that 'smart money' is moving into high-throughput layer-1 blockchains.
Diversification in Digital Asset Market
Kumar emphasized that the altcoin growth is not solely about Bitcoin weakness but also about diversification within the market. 'This altcoin rally is fueled by relatively healthy liquidity conditions and positive regulatory developments,' he stated, pointing to structural changes in capital allocation.
The situation in the crypto market shows significant interest in altcoins, supported by healthy liquidity and a constructive regulatory environment. Ethereum and Solana continue to attract capital, indicating a potential long-term capital rotation.
