Analysts claim crypto capital rotation is driving Ethereum, Cardano and Solana gains
Quick Take
- Capital is flowing out of Bitcoin and into altcoins, according to QCP Capital analysts — with Ethereum, Cardano, and Solana seeing gains of 5%, 9%, and 4%, respectively, in the past 24 hours.
- Bitcoin’s increase was more modest at 1.5%.
- The shift in market sentiment is highlighted by a 13% jump in the ETH/BTC ratio, which has recovered from a low of 0.0318 last Thursday to 0.0371 today.
Ethereum has seen a notable resurgence in the past 24 hours, gaining over 5%, while bitcoin traded up a more modest 1.5% over the same period. This shift in market dynamics is reflected in a 13% surge in the ETH/BTC trading pair, which rose from 0.0318 to 0.0371 in the past day — marking a significant recovery from its post-election low.
"After Bitcoin’s dip, Ethereum is staging a comeback, with signs the market is shifting flows to ETH and alts, as evidenced by a 13% surge in the ETH/BTC pair," QCP Capital analysts said.
Ethereum, Cardano, and Solana have posted gains of 5%, 9%, and 4%, respectively, in the past 24 hours, while Bitcoin's increase was more modest at 1.5%, according to The Block's Prices Page.
ETH/BTC trading pair is at a multi-month high. Image: TradingView
Market indicators reflect increased investor interest in Ethereum, with its decentralized finance sector seeing significant growth. Ethereum DeFi's total value locked has surged by 7% in the past week, now standing at $66.43 billion, according to DefiLlama.
The broader cryptocurrency market is being influenced by developments in traditional finance, including a rally in U.S. markets following president-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary, which boosted investor sentiment. The Dow Jones and S&P 500 both hit record highs on Tuesday, with the Dow rising 123.74 points (+0.28%) to close at 44,860.31, reversing a drop of over 300 points earlier in the session. The S&P 500 added 0.57%, closing at 6,021.63, while the Nasdaq Composite gained 0.63% to reach 19,174.30. Investors responded positively to Bessent’s "3 Arrows" strategy, which focuses on targeting a 3% budget deficit by 2028, 3% GDP growth, and a daily oil production increase of 3 million barrels.
The global cryptocurrency market cap stands at $3.4 trillion, an increase of 2.1% in the past 24 hours, according to Coingecko data. Bitcoin dominance is at 54.7% and Ethereum dominance is at 12.4%.
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