The crypto market shows early signs of an altcoin season, where Ether (ETH) begins to outperform Bitcoin (BTC). This could signal investors about capital redistribution.
Investors Rotate Capital to Altcoins
Recently, Ether (ETH) has surged against Bitcoin (BTC). The price ratio of ETH to BTC has increased from 0.018 to 0.031, reaching its highest level since January 24. This shift began after the ETH/BTC Market Value to Realized Value (MVRV) ratio fell into extremely undervalued territory in April. According to CryptoQuant analysts, this may lead to a full-blown altcoin season, where capital rotates away from BTC to ETH and other altcoins.
ETH Faces Less Selling Pressure Than BTC
Investors are increasingly allocating capital to U.S. spot Ethereum exchange-traded funds (ETFs) compared to Bitcoin. The ETH/BTC ETF Holdings ratio has grown from 0.05 to 0.12. Meanwhile, the ETH/BTC exchange inflow ratio that measures selling pressure dropped to its lowest level since 2020, indicating that ETH is facing less selling pressure compared to BTC.
General Insights on the Cryptocurrency Market Situation
The overall trading volume of altcoins has increased to the highest level since March, totaling $67 billion. This growth in interest for altcoins among investors reflects a positive trend in the cryptocurrency market.
The cryptocurrency market is showing signs of an emerging altcoin season, with Ether taking a significant role in this process. The increase in ETH trading volumes indicates investor interest and potential shifts in capital priorities.
