Ethereum Shakes Things Up: Altcoin Surge on the Horizon?

Ethereum pulls ahead of Bitcoin in recent ETF inflows—oh, look, a sign for altcoins! 🙄
BTC dominance drops a tiny bit—could this be the start of the altcoin takeover? Who knows! 🤔

So, Ethereum [ETH] is doing better than Bitcoin [BTC] in ETF flows lately. And I guess that could mean, maybe, just maybe, the altcoin sector could see a little relief rally. Fingers crossed! 🙃

Tracy Jin, COO of MEXC exchange, told AMBCrypto that the ETF divergence is just a fancy way of saying “capital rotation.” Basically, money’s flowing out of BTC and into ETH. How shocking!

She said in an email statement,

“The sharp contrast in ETF flows is one of the most telling signs of the beginning of capital rotation on the market.”

Yeah, sure, Tracy. That sounds important. She also added,

“Ethereum’s ETFs have recorded 11 consecutive days of inflows totaling over $630 million against the choppy macroeconomic and geopolitical tension backdrop, whilst Bitcoin ETFs have seen three straight days of outflows bleeding over $1.2 billion.”

Bitcoin ETFs broke their streak of inflows last week and bounced back on Tuesday. But guess what? ETH still led the charge with a $187 million inflow this week. Gotta love it. 🤑

Is BTC about to get outshined by altcoins? Let’s see…

According to Tracy (again), Ethereum’s outperformance triggered a tiny, almost insignificant, bounce in some altcoins like Monero [XMR], Ethena [ENA], Hyperliquid [HYPE], and Arbitrum [ARB].

“Other coins like XMR, ENA, HYPE, AAVE, and ARB are following ETH, posting more than 5% gains in contrast to BTC’s muted 0.6% gain during Tuesday’s recovery rally.”

But here’s the kicker: Bitcoin’s dominance is wobbling like a poorly made chair. Over the last two weeks, BTC dominance fluctuated around 63% and even dropped by a measly 1% in June. Wow, groundbreaking stuff. 😬

If BTC keeps sliding, the broader market could be in for a surprise. Remember when BTC dropped by 5% back in May? Yeah, that triggered a 300% spike in HYPE and other tokens. Let’s see if history repeats itself… or not. 🤷‍♂️

But here’s the twist: not all altcoins will perform well if the altcoin season actually happens. Oh, the drama! 🎭

Looking at recent sector performance, DeFi (28%), memecoins (22%), and L1 tokens (10%) were the big winners. Meanwhile, L2 tokens were somewhere at the bottom of the list, probably crying.

If altcoin season is really coming, you might want to have a portfolio filled with the big winners. Otherwise, good luck, pal! 😅

Overall, altcoin season in 2025? Not quite there yet. But, hey, all the signs point to it *maybe* happening. Jin even said so herself. 🙄

“Altseason may not be in full effect just yet, but the conditions are aligning. The early groundwork for altseason is currently being laid, and this time, institutional capital is coming along for the ride.”

2025-06-04 19:15

Is BTC about to get outshined by altcoins? Let’s see…

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