The door for the next “Altcoin season” is gradually opening as the performance of the Ethereum ETF spot on the first day of launch has far exceeded the expectations of many investors.
The altcoin season largely depends on the launch of the Ethereum spot ETF , which went live yesterday. Currently, investors are waiting for the moment when altcoins surpass Bitcoin's demand, led by ETH.
The ETH ETF launched with over $10.2 billion in Assets Under Management, of which the Grayscale Ethereum Trust (ETHE) alone holds $9.2 billion.
Surprisingly, the inflows into the ETH ETF overwhelmed the selling pressure from the Grayscale Ethereum Trust (ETHE) on its first day of launch. The total net inflow achieved by the spot ETH ETF was +$106.6 million, according to Farside UK.
Source: Farside UK
This is an extremely optimistic signal as it shows strong interest from institutional investors. This will gradually push ETH prices higher as Grayscale Ethereum Trust (ETHE) selling dries up, as we have seen with the Bitcoin spot ETF .
ETH 's price increase has also been important in driving Capital inflows into the altcoin market.
The total market Capital of all altcoins (TOTAL2) is currently at $1.05 trillion, moving in a flag pattern. The flag pattern is a bullish pattern, often followed by strong price increases.
TOTAL2 chart 3-day frame | Source: TradingView
The model's target, calculated as the height of the flagpole, suggests that the breakout is likely to result in a 44% gain. This would push TOTAL2 to $1.56 trillion, triggering a boom across many altcoins.
Altcoin season index shows the spotlight is still on Bitcoin. For BTC dominance to decrease, altcoins need to attract Capital inflows beyond what is flowing into Bitcoin.
Altcoin Season Index | Source: BlockchainCenter
It may take some time for the market to see a change, as macroeconomic conditions remain uncertain. The expected time for the altcoin season to appear may last until the end of August this year.
You can XEM coin prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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