A new wind is blowing in the cryptocurrency market. Recently, Ethereum's (ETH) upward trend has become prominent, and the flow of funds that were previously centered around Bitcoin (BTC) is gradually shifting towards altcoins. According to a report by market analysis firm CryptoQuant, if this trend continues, the possibility of an altcoin season fully taking off is being raised.
At the center of this upward trend is Ethereum's rebound. The ETH/BTC price ratio has risen to a maximum of 0.031 since January, which represents an improvement in price performance of over 72% against Bitcoin. CryptoQuant explained that after ETH's MVRV (Market Value to Realized Value) entered the oversold zone in April, the rebound began in earnest. Currently, Ethereum is rising towards its one-year moving average, and if the trend continues, there is potential for additional growth compared to BTC.
The flow of market liquidity is also developing favorably for ETH. Ethereum's spot trading volume has recently recorded about $25.7 billion (approximately 35.723 trillion won) over the past week, surpassing Bitcoin's $24.4 billion (approximately 33.916 trillion won). This is the first time in a year, and the ETH/BTC trading volume ratio exceeding 1 suggests the possibility of Ethereum taking market leadership. At the same time, the total altcoin trading volume increased to $67 billion (approximately 93.143 trillion won), recording its highest level since March. This is interpreted as a strong signal that investors are turning their attention to assets other than Bitcoin to diversify their returns.
In terms of capital inflows, ETH is also performing well. In the US market, funds flowing into Ethereum spot ETFs are increasing faster than Bitcoin ETFs, with the ETH/BTC ETF holding ratio jumping from 0.05 to 0.12. This demonstrates that institutional investors are also expanding their trust in Ethereum.
In contrast, the selling pressure indicators are more favorable for Ethereum. The ETH/BTC exchange inflow ratio has fallen to its lowest level since 2020, which means that Ethereum has less selling pressure compared to Bitcoin. Although the figure has slightly rebounded, it remains at a low level, suggesting that Ethereum is currently entering a strong phase supported by buying pressure.
Experts predict that ETH is likely to outperform BTC in the coming months. Depending on how quickly the market shifts towards altcoins, an opportunity may open up for various altcoins alongside a decline in Bitcoin's market dominance. In other words, the second act of the 'alt season' is beginning.
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