Story Highlights
After a challenging week, the crypto market experienced a brief uplift, predominantly driven by Ethereum, BNB, and Solana. Meanwhile, Ethereum ETFs are enjoying significant inflows, contrasting sharply with the outflows seen in Bitcoin ETFs. With a vast array of altcoins available, investors are encouraged to focus on DeFi, memecoins, layer-2 coins, and AI-focused tokens.
Following substantial losses recently, the cryptocurrency market made a comeback within 24 hours, with Ethereum (ETH), BNB, and Solana (SOL) leading the charge. At one moment, Bitcoin (BTC) surged to $96,000, but the excitement was short-lived as momentum waned, leaving the price hovering around $94,000 during early European trading on Tuesday, December 24.
Bitcoin has held a commanding position in the market this year, but many altcoins are now displaying stronger performance. Investors are eyeing a significant rally in the first half of 2025. Despite Bitcoin’s impressive growth, attributed to increased institutional adoption, its returns are decelerating, allowing altcoins to gain ground.
Ethereum Spot ETFs See Major Cash Inflows
The Ethereum-focused exchange-traded funds (ETFs) in the U.S. have seen remarkable cash inflows, reflecting solid investor confidence in Ethereum. On Monday, U.S. Ethereum spot ETFs recorded a net inflow of approximately $130 million, elevating the total to $2.46 billion. Notably, BlackRock’s ETHA led this surge with a net inflow exceeding $89 million, holding over 1 million ETH. Fidelity’s FETH also recorded a noteworthy $46 million inflow, pushing its assets under management above $1.6 billion.
In contrast, Bitcoin-focused ETFs in the U.S., with the exception of BlackRock’s IBIT, have seen significant outflows. Over the past three days, these ETFs have faced cumulative outflows exceeding $1.1 billion, indicating a shift in investor sentiment.
Altseason on the Horizon?
Technically, Bitcoin’s dominance has broken free from a rising wedge pattern that developed over the past year. This shift hints that whale investors are increasingly moving towards altcoins, suggesting that the altcoin market could surpass Bitcoin’s performance in the coming months. The excitement is palpable, as one crypto enthusiast tweeted: “$BTC (Dominance) Rising Wedge Breakout + Retest confirmed! Altseason has officially begun—get ready for the ride!”
With over 12,000 altcoins circulating, it’s crucial to recognize that liquidity dilution may prevent some altcoins from fully joining in on the anticipated rally.
Where to Look in the Altcoin Market
As we venture deeper into the potential altseason, investors should pay attention to DeFi tokens that address real-world issues, community-inspired memecoins, well-capitalized layer-two solutions, and AI-related projects. These sectors are poised to play a critical role in the next wave of crypto advancements.
The crypto landscape is constantly evolving, offering fresh opportunities daily. Stay tuned for updates and insights right here, ensuring you’re in the loop as the market shifts.
