Investor interest in altcoins like SOL and XRP is rising amid Bitcoin's struggles and macroeconomic shifts.
Altcoins Gaining Traction Amid Bitcoin's Struggles
Bitcoin, despite holding strong against tariff threats, faced sell-offs. Major U.S. Bitcoin ETFs like Fidelity, Ark 21Shares, and Grayscale experienced heavy withdrawals, resulting in a $430 million loss for Bitcoin. This has led to speculation about Bitcoin's slipping dominance and investors seeking high-cap altcoin opportunities.
SOL and XRP Break the Trend
Digital asset funds, despite 19 weeks of gains, saw $415 million in outflows last week. Bitcoin was hit hard, losing $430 million, while Ethereum saw modest outflows of $7.2 million, yet still netted $785 million in monthly inflows. In contrast, Solana and XRP attracted $8.9 million and $8.5 million respectively, highlighting growing institutional interest and the potential for an altcoin season.
Is Bitcoin's Dominance Under Threat?
Bitcoin's current consolidation phase has sparked 'breakout' talks, but this cycle is deeply intertwined with macro trends, such as the recent dip below $100k triggered by tariff policy. Bitcoin dominance (BTC.D) has slipped below 61% as investors are drawn to alternatives. With SOL and XRP gaining traction, they might pose significant competition to BTC.D.
The rise of altcoins and increasing macroeconomic uncertainty necessitate a reevaluation of the current crypto market landscape. Bitcoin's and high-cap altcoins like SOL and XRP's responses will be crucial in the coming months.
