The cryptocurrency market is experiencing significant changes as Ethereum surpasses Bitcoin in net capital change, which may indicate the start of an altcoin season.
Ethereum Overtakes Bitcoin in Net Capital
According to Glassnode data, Ethereum (ETH) has outpaced Bitcoin (BTC) in net capital change. Analysts, particularly @ali_charts, noted that this is a strong signal indicating the onset of an altcoin season.
Price Dynamics and ETFs
The recent surge in ETH's price, breaching the $4,000 mark, coincides with a $1.6 billion influx into Ethereum ETFs. In contrast, Bitcoin experienced $175 million in outflows through ETF. These factors signify growing investor confidence in Ethereum.
What’s Next for Altcoins
Despite the optimism, experts caution the need for vigilance. Bitcoin’s dominance has declined from 64% to 60%, potentially indicating upcoming volatility for altcoins. Concerns arise as the market seems to be in a preliminary phase of the altcoin season.
With its rising metrics and institutional backing, Ethereum may become a focal point in the cryptocurrency market in 2025. However, investors should consider potential risks and plan their strategies accordingly.
