In the wake of the United States potentially approving Bitcoin exchange-traded funds (ETFs), the cryptocurrency market is witnessing a notable surge. Bitcoin, leading the charge, has achieved a new yearly high of around $44,500. Parallelly, Ethereum is also experiencing significant growth, buoyed by substantial inflows into crypto investment products.
Bitcoin bulls are currently steering the market, as evidenced by the cryptocurrency hitting a fresh yearly high earlier this week. The price has been consolidating in a bullish pennant pattern, signaling a potential uptrend towards the $48k mark. This bullish sentiment is further strengthened by record inflows into crypto investment products, with the past ten weeks alone seeing an impressive $1.76 billion influx.
However, the Bitcoin bull rally is expected to decelerate due to diminishing returns. On-chain data reveals an accelerated shift in Bitcoin profits, with many whale investors diversifying into Ethereum (ETH) and other altcoins. The ETH/BTC pair, a key indicator of the altseason, is consolidating in a macro ascending triangle, showing strong support at around 0.051.
With Ethereum’s price breaking out to a new yearly high of approximately $2,387 in the past two weeks, Michaël van de Poppe, a renowned crypto analyst based in the Netherlands, forecasts that the altcoin could rally beyond $3,000 in the first quarter of 2024. He stated, “The momentum we’re seeing in Ethereum, especially against Bitcoin, is a clear indicator of its growing dominance in the market.”
Altcoins Time to Shine on Horizon:
The excitement is not limited to Ethereum. The altcoin market, led by meme coins, is poised for more gains following solid breakouts in TOTAL2 and TOTAL3 indices. Observations indicate a trend of crypto cash flow moving from Bitcoin to large-cap altcoins, followed by small-caps and meme coins.
As the cryptocurrency market continues to evolve, the spotlight is gradually shifting from Bitcoin to other promising digital assets like Ethereum and various altcoins. With major developments like the potential approval of Bitcoin ETFs in the U.S., the crypto landscape is poised for further dynamic changes in the coming months.