Bitcoin Domination Drops, Signs Of Altcoin Season Begins Soon

JAKARTA - The crypto market recently experienced a major shift in the capital flow between the two largest assets, Bitcoin (BTC) and Ethereum (ETH), especially in the Exchange Trade Funds (ETF) product of the two assets. The flow of these funds is seen as a signal of the start of the altcoin or altseason season.

On December 23, the ETF Bitcoin (BTC) was recorded to have experienced a significant outflow of 226 million US dollars (approximately IDR 3.6 trillion), while the Ethereum ETF actually experienced an inflow of 130 million US dollars (approximately IDR 2.1 trillion). This huge difference highlights significant changes in investor sentiment, which began to move from Bitcoin to Ethereum.

Since December 19, Bitcoin ETF has experienced a drastic decline with total outflows of more than US$1.1 billion (approximately Rp17.8 trillion). On December 19, Bitcoin ETF lost US$680 million (or around Rp11 trillion), which is the largest outflow recorded since the launch of the Bitcoin ETF earlier this year.

One of the factors contributing to this decline was sales of 1,870 BTC by the Grayscale GBTC funds within three days.

Meanwhile, Ethereum ETF has attracted the attention of investors with considerable inflows, indicating increased interest from institutions in Ethereum. One important example is the iShares Ethereum Trust ETF from BlackRock, which has amassed more than one million ETH.

This is seen as a sign that Ethereum and other altcoins are preparing to record a significant price increase. Another factor is the declining dominance of Bitcoin which is often a sign of the start of the "altcoin season" aka altseason.

Optimism towards Ethereum is increasing thanks to technical indicators showing potential reversal trends, such as the ETH/BTC trading pair which recorded a lower record on December 22. In addition, the number of ETH locked in staking has also increased, which can reduce supply in circulation and put rising pressure on the price of Ethereum.

However, crypto analyst Ali Martinez estimates that the spike in Ethereum prices may be slightly delayed, although currently ETH is trading at $3,363, a 2.7% drop in the last 24 hours.