Bitcoin catches its breath after hitting $90,000… Solana jumps 11% in a week, Ethereum surges 20%

As Bitcoin hit an all-time high of $90,000, investors' attention has shifted to altcoins (cryptocurrencies other than Bitcoin). This is a 'learning effect' as Bitcoin has historically risen first, followed by the rise of major altcoins such as Ethereum and Solana during cryptocurrency upswings. Particularly, the expectation of the launch of various altcoin spot exchange-traded funds (ETFs) in the US is stimulating investors' appetite.

As of 3 pm on the 13th, based on CoinMarketCap, Bitcoin was trading at $86,634, down 2% from the previous day. After breaking through $90,000 and setting new highs day after day, Bitcoin has seen a slight decline. At the same time, Ethereum fell 5.77% to $3,141, and Solana fell 5.98% to $204.79.



However, the recent trend of altcoins shows that the upward momentum is still intact. The upward trends of Ethereum and Solana are particularly noticeable. Over the past week, Ethereum's gain was 21%, higher than Bitcoin's 16%. Solana, the 4th largest cryptocurrency by market cap, also rose 11% in the past week.

The Altcoin Season Index on CoinMarketCap rose 4 points to 39 points from the previous day. The Altcoin Season Index compares the price fluctuations of the top 100 altcoins (excluding stablecoins) and Bitcoin over the past 90 days. The closer the index is to 100 points, the higher the altcoin's rise rate compared to Bitcoin. The rise in the Altcoin Season Index indicates that the liquidity in the cryptocurrency market is gradually shifting from Bitcoin to altcoins. Wonnjun Lee, a senior consultant at Dispread, said, "In the past cryptocurrency cycles, Bitcoin has typically risen first, followed by the rise of major altcoins, with funds circulating. This time, too, it is expected that major altcoins such as Ethereum and Solana will see larger gains than Bitcoin after Bitcoin's big surge."

Ethereum and Solana also have high expectations for fund inflows into ETFs. According to Citigroup, the net inflow into Ethereum spot ETFs was $132 million in the two days after the US presidential election. This is the largest amount since the launch of the Ethereum spot ETF in July. Considering that the popularity of Ethereum spot ETFs was lower than Bitcoin spot ETFs until recently, it is observed that the undervaluation of Ethereum will be resolved going forward. Solana plummeted to the $12 level after the FTX cryptocurrency exchange bankruptcy in 2022, but has surged 17-fold over the past two years. Expectations are also growing that a Solana spot ETF will be launched following Bitcoin and Ethereum spot ETFs. The prevailing view is that Donald Trump's victory in the US presidential election will give a boost to Solana. Jeffrey Kendrick, an analyst at Standard Chartered, forecast that Solana's price could rise 5-fold by the end of 2025 thanks to Trump's election win. In addition, memecoins such as Bonk and CatInADogWorld, which are based on Solana, are also gaining popularity, expanding the influence of the Solana ecosystem.

However, there are also forecasts that a similar upward pattern to the past may not be repeated this time. Some view the cryptocurrency market as overheated. Wonnjun Lee, the consultant, said, "Compared to past cases, memecoins are attracting more attention in this bull market, so it seems difficult to expect the previous cycle pattern to emerge." There is also a possibility that liquidity will flow into relatively smaller memecoins rather than the top-ranked altcoins that have already become expensive.

Reporter Yeri Do

yeri.do@decenter.kr