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Altcoin

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Altcoin Season May Be Brewing, But Will Be More Selective, Analysts Say

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A group of major altcoins have bounced stronger than bitcoin

on Wednesday, showing relative strength despite a weakening risk appetite in broader capital markets.

BNB (BNB), the native token of the BNB Chain and closely adjacent to crypto exchange giant Binance, surged 6% to a fresh all-time high of $875.

Ethereum’s ether (ETH) rebounded 7% from the overnight lows to $4,350, erasing all of Tuesday’s losses. Some observers speculated that ETH treasury firms buying the asset could have fueled the rally.

Solana’s SOL (SOL) gained 6.1%, also outpacing yesterday’s decline, while tokens of ChainLink

and AAVE were up 10% and 7%, respectively.

Meanwhile, the leading crypto BTC advanced a modest 1.4% from the lows, changing hands at just above $114,000. Major stock indexes, the S&P 500 and the tech-focused Nasdaq, closed 0.2% and 0.5% lower.

While it might be too early to call for any bottom with rocky next few days and weeks ahead on the macro front, the relative strength of altcoins versus bitcoin is notable during a risk-off period.

Bitcoin’s dominance, measuring the largest crypto’s market share in the total market capitalization of digital assets, is on the brink of making a fresh six-month low, signaling that smaller, riskier tokens are taking leadership in market gains, often dubbed as “altcoin season.”

Bitcoin dominance (TradingView)

Still, hopes for repeating past cycles’ breakneck altcoin action might be unrealistic, ByteTree analysts led by Shehriyar Ali and Charlie Morris noted.

“An alt season may be brewing, but it will not look like the wild rallies of the past,” the report said. “Instead, it will be defined by selective, fundamentals-driven growth, rewarding quality projects and penalising those without substance.”

Read more: Hawkish FOMC Minutes Knocks Legs Out of Crypto Bounce



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NFT Gaming

HYPE, SUI Lead Altcoin Losses as Ethereum Dips Under $4,300

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In brief

  • Hyperliquid (HYPE) and SUI led losses among major altcoins as Bitcoin’s correction from $118,000 to $115,000 triggered widespread liquidations.
  • The selloff comes ahead of Thursday’s Jackson Hole Economic Symposium, with analysts noting funding rates had been “warning of trouble” and higher-than-expected PPI data forcing markets to scale back September rate-cut expectations.
  • Analysts called the market move “a corrective pullback within an uptrend” but warned that if Ethereum breaks below $4,150 support, further cascading liquidations could target the $3.9k–$3.6k range.

Ethereum’s slip below $4,300 set off a chain reaction across crypto markets Monday morning, wiping out more than $487 million in long positions and leaving altcoins bleeding.

Hyperliquid (HYPE) plummeted 8.7% to $43.38 while Sui (SUI) crashed 7.3% to $3.55, leading a brutal selloff across altcoins.

Ethereum (ETH) shed 5.4%, Solana (SOL) tumbled 5.6%, and Cardano (ADA) declined 6.2%, according to CoinGecko data.

XRP (XRP) fell 4.5%, Stellar (XLM) dropped 5.4%, and Dogecoin (DOGE) retreated 4.6% in the last 24 hours.

“This looks like a fairly natural pullback after the strong run many cryptocurrencies had seen in recent weeks, with liquidations amplifying the downside across the market,” Nansen analyst Nicolai Sondergaard told Decrypt.

“Since altcoins tend to react more sharply during these periods, tokens like HYPE and SUI experienced even steeper declines,” Sondergaard noted, pointing out that Bitcoin’s sell-off triggered the declines.

Traders brace for Jackson Hole meeting

The liquidation cascade comes ahead of Thursday’s Jackson Hole symposium, with QCP Capital analysts sharing in their latest report how “some traders believe that the overnight washout reflects de‑risking ahead of the symposium,” where Fed Chair Jerome Powell takes the stage.

Held each August in Jackson Hole, Wyoming, the symposium gathers the Fed, global central bankers, and policymakers.

QCP analysts added that “BTC funding rates had been warning of trouble” with rates turning negative by Saturday despite spot prices rising over the weekend.

“The U.S. PPI came in higher than expected, forcing markets to quickly scale back September rate-cut bets that earlier signs of labor market softness had elevated,” Dan Chen, analyst at crypto exchange Bitunix, told Decrypt.

Chen called the selloff “a corrective pullback within an uptrend” and said the market may consolidate through Jackson Hole if Ethereum “can hold support near $4,150” before resuming its advance.



However, he warned that “a breakdown risks further cascading liquidations with downside targets in the $3.9k–$3.6k range, where altcoins—especially HYPE and SUI—are likely to stay relatively weaker.”

Some 75% of Ethereum’s $206.79 million in liquidations in the last 24 hours came from long positions, totaling more than $180.52 million, according to CoinGlass data.

“The mounting queue of soon-to-be-unstaked ETH could be driving the asset’s recent retracement,” Juan Leon, Bitwise Senior Investment Strategist, previously told Decrypt.

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altseason
NFT Gaming

Altseason Momentum Strengthens As Altcoin Liquidations Surpass Bitcoin

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Speculation about a potential “altseason” has grown in the third quarter of 2025, fueled by brief periods in which several altcoins outperformed Bitcoin (BTC). However, the broader altcoin market has struggled to sustain momentum due to Bitcoin’s choppy price action, pressured by ongoing macroeconomic headwinds. Even so, fresh market data indicate traders are gradually shifting their focus away from Bitcoin and toward alternative cryptocurrencies, raising expectations that altcoins could drive the next leg of the crypto bull market.

Crypto Sentiment Shifts: Altcoins Lead In Liquidations, Overtake BTC

An altseason is defined as a period in the crypto bull run where altcoins generally outperform Bitcoin. It is typically marked by a decline in BTC Dominance as investors rotate capital from Bitcoin into other cryptocurrencies that promise higher profit returns during this period. Over the last two months, signals of an impending altcoin dominance for the current bull market continue to pile up.

In a QuickTake post on CryptoQuant, CEO & Founder of Alphractal, Joas Wedson, reports another omen in that altcoin liquidations are now higher than those of Bitcoin. From January to December 2024, the majority of cumulative liquidations on Binance came from Bitcoin positions, significantly outpacing those of all other cryptocurrencies.

Source: CryptoQuant

This trend painted a clear picture, i.e., Bitcoin was the primary focus for leveraged traders. However, since the start of 2025, the tides have turned. The BTC vs. Altcoin Cumulative Liquidation Delta, a key metric tracking the liquidation disparity between Bitcoin and altcoins, has been falling steadily throughout 2025. This decline indicates that altcoin liquidations are catching up and now surpassing those of BTC.

In the second half of 2025, this shift has become more pronounced, suggesting that traders are now more active and more vulnerable in altcoin markets than ever before. Wedson explains the bullish implications of this development for an altseason, stating that traders are now increasing speculations on altcoins more than Bitcoin.

This suggests a significant change in market behavior as Ethereum, XRP, and other alternative cryptocurrencies are increasingly being viewed as higher-risk, higher-reward vehicles, even as Bitcoin remains the dominant store of value in the crypto space.

Crypto Market Overview: Altseason Remains On Hold

At the time of writing, the total crypto market cap is now valued at $3.93 trillion following a 0.22% gain in the past day. Altcoins currently account for 40.4% of this value with a collective market cap of $1.59 trillion.

Meanwhile, the CoinMarketCap’s Altseason Index currently reads 46, suggesting that while altcoins are gaining ground, market conditions have yet to fully align with a classic “altseason” scenario.

Total altcoin market cap valued at $1.59 trillion on the daily chart | Source: TOTAL2 chart on Tradingview.com

Featured image from PlasBit, chart from Tradingview

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Altcoins
GameFi Guides

Time To Forget Altcoin Season? Bitcoin Dominance At This Level Is This Only Hope

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Hopes of an altcoin season have been dashed after the Bitcoin price crashed below $100,000, and altcoin prices fell rapidly in response. The altcoin declines have been even more prominent, with most altcoins now sitting more than 70% below their all-time high levels. During this time, the Bitcoin dominance has been rising rapidly, suggesting that all of the focus is still on Bitcoin right now. As the dominance rises, though, a crypto analyst has revealed what could trigger an altcoin season.

The Catalyst For The Next Altcoin Season

After the crash coming out of the weekend, the Bitcoin dominance shot up once again above the 66% mark to reach new 4-year highs. This showed that the altcoin season was nowhere close as prices fell across the board, and the altcoin market cap plummeted.

Highlighting the rise in the Bitcoin dominance, crypto analyst Rekt Capital pointed out why this increase is important. Highlighting a previous post on X (formerly Twitter), the analyst explained that the rise in the Bitcoin dominance is actually important if there is to be an altcoin season.

More importantly, the Bitcoin dominance would have to cross into the 70% territory before there is an end to the onslaught on the altcoin market. Pointing to historical performance, Rekt Capital mapped out the Bitcoin dominance being rejected at the 71% mark before the altcoin season can begin.

The post read: “If history repeats, the real Altseason everybody is waiting for would begin once Bitcoin Dominance rejects from 71%”

Source: X

What Happens To Altcoins If BTC Dominance Goes To 71%?

Given Rekt Capital’s call for the need for the Bitcoin dominance to rise to 71% before an altcoin season can begin, it has understandably raised questions around what this would mean for altcoins. As already seen, a continuous rise in the Bitcoin dominance would mean that the altcoin prices would continue to fall, and with prices already so low, it seems a lot of altcoins could crash completely.

The crypto analyst addresses this in another X post, explaining that the Bitcoin dominance rising to 71% would not mean altcoins would go to zero. He points to a similar trend back in February  2025 when the Bitcoin dominance rose 6% in one month. Despite this, altcoin prices did hold up until a recovery began.

Rekt Capital suggests that the market may react similarly to the way that it did back in February, pointing out that the road to 71% is less than what happened in February, at only 5.5%. Now, it’s just a waiting game to see how the market plays out in the next few weeks as hopes of an altcoin season continue to dwindle.

BTC dominance holds high above 65% | Source: Market Cap BTC Dominance on TradingView.com

Featured image from Dall.E, chart from TradingView.com

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Geopolitical tensions cause crypto to crater despite select altcoin gains
GameFi Guides

Geopolitical tensions cause crypto to crater despite select altcoin gains

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The global cryptocurrency market cap fell 6.2% over the past 24 hours to $3.16 trillion, as escalating geopolitical tensions between the U.S. and Iran spurred a risk-off environment among investors. Total trading volume hit $148 billion during the same period.

Top gainers defying the trend included Gains Network (GNS), which surged 49.8%, Poollotto.finance up 38.2%, and meme coin Banana For Scale, which jumped 21.3%. On the flip side, Reservoir rUSD (RUSD) tumbled 50%, Gorbagana dropped 36.8%, and GAME by Virtuals fell 34.7%.

The shift comes as investors flee riskier assets like cryptocurrencies in favor of traditional safe havens such as the U.S. dollar, gold, and Treasury bonds. Though the U.S. Dollar Index edged slightly lower to 98.774 (-0.01%), analysts expect near-term strength from safe-haven demand, according to Reuters.

The decline in crypto prices reflects broader market psychology during geopolitical crises. Rising uncertainty tends to shake investor confidence in volatile assets.

Despite being decentralized, crypto is still perceived as speculative, observers note. When conflict erupts, people don’t want volatility—they want security.

Macroeconomic spillovers from geopolitical instability—such as inflationary pressure from rising oil prices or central bank rate hikes—also dampen crypto sentiment, especially when higher interest rates make risk assets less appealing.

In short, crypto’s latest dip underscores how sensitive the market remains to global events—and how quickly investor appetite can shift in uncertain times.



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Altcoin
GameFi Guides

Altcoin Market Set For Massive Surge In Coming Months – Is Altseason Finally Here?

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For a prolonged period, Altcoins have remained in the shadow of Bitcoin, as the flagship asset dominated the crypto market with its powerful growth. However, all that could change soon. Many crypto analysts are currently pointing to a resurgence of the alt market, predicting an impending major uptrend.

A Parabolic Altcoin Rally Looming

Presently, a positive development appears to be unfolding in the altcoin market performance. Following a phase of relative dormancy and subdued price action, Captain Faibik, a technical expert and trader, has hinted at a possible incoming spike in the alt market once again.

In the 1-day time frame chart, the alt market is flashing a bullish signal as it draws closer to a key breakout from a broadening wedge pattern. A broadening wedge formation is a technical chart pattern that is displayed by an expanding channel of high and low levels of support and resistance.

Alts market gearing up for a breakout | Source: Captain Faibik on X

Given that a breakout is in sight, the expert is confident that alts are about to go parabolic in the third quarter of this year. As numerous altcoins are building solid bases and gathering upward momentum, it looks like the stage is set for a potentially explosive run in the upcoming months.

According to Captain Faibik, the pain of the past six months may finally flip into significant gains, expressing his bullish sentiment towards several alts. While a rally brews, the analyst has urged investors not to panic sell or keep watching charts. Rather, they should extend their focus on accumulating and holding non-BTC assets in Spot.

Historical Trend Pointing At A Massive Altseason

BATMAN, another crypto analyst who has also examined the current price action of alt market, has predicted an impending explosive rally. On the weekly chart, the expert has identified the reoccurrence of past trends that preceded a major Altcoin Season.

Drawing attention to 2020, the chart shows that alts went wild during the cycle all the way to 2021. Within this period, alts market pumped hundreds of percent off the bottom, topped out, pulled back, pumped again, and then finally dumped hard the last time before the real altseason started.

Looking at the 1-week chart, this pattern seems to be resurfacing, forming a similar double top-like move that tricked many retail buyers into purchasing the second high. BATMAN claims that altcoins now feel as dead as they did in the past. 

However, the charts are nearly identical when aligned, down to the -53% decline from the second peak to support. Even though history does not always repeat itself, it often rhymes, and the expert is confident that a similar result might occur in this cycle.

In his recent analysis of the altcoin market cap, Michael Van De Poppe, a crypto expert and founder of MN Consultancy, noted that the market is signaling a strong upward move, which would be occurring in the coming periods. Considering the bullish signal, the expert believes that “this current cycle is far from over.”

Overall crypto market cap excluding BTC at $1.15 trillion | Source: TOTAL2 on Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

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Crypto Trends

Altcoin Chart Transitions From Bearish To Bullish, Is It Time For Alt Season?

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Altcoins are beginning to show fresh momentum, as the Total3 chart, representing the combined market capitalization of all altcoins excluding Bitcoin and Ethereum, has just transitioned from a bearish to bullish structure. According to a new analysis, the breakout signals a potential trend reversal, raising the possibility that the market could be entering the early stages of the long-awaited alt season. 

Altcoin Chart Bullish Breakout Signals Alt Season

Crypto market expert Trader Tardigrade’s new technical analysis of the TOTAL3 chart has officially flipped bullish, showcasing a notable transition from a previously bearish structure into a potentially explosive setup. The analyst is currently closely watching this shift, as it may signal the early stages of an upcoming altcoin season.

According to the altcoin TOTAL3 chart, the market had initially completed a textbook Double Top pattern, a well-known bearish reversal signal. This pattern was clearly defined by two consecutive price peaks—both labeled as “Top” on the price chart—that failed to break higher, ultimately leading to a sharp sell-off and decline. 

The breakdown from this structure confirmed a bearish phase, with the price ultimately reaching its projected target to the downside. This target zone is visibly marked on the chart, showing the Double Top pattern has fully played out. 

Source: Trader Tardigrade on X

Following this bearish move, Trader Tardigrade’s chart analysis shows that the market began to consolidate and gradually build what now appears to be a classic Inverse Head and Shoulders pattern. Notably, the neckline of this pattern, marked clearly on the chart around the $920 billion level, is the key resistance threshold. 

A confirmed breakout above this neckline would validate the Inverse Head and Shoulders formation, signaling a transition into a “super bullish phase” for the broader altcoin market. Trader Tardigrade’s chart also projects a potential target of approximately $1.29 trillion if this breakout occurs.

At present, the price action of the TOTAL3 chart is forming the right shoulder, which is a critical phase in the development of the Inverse Head and Shoulders pattern. While confirmation is still pending, the formation of this bullish setup following the completion of a previously bearish structure marks a significant development. If the neckline is broken with convincing volume and momentum, it could act as the trigger to a potentially strong altcoin season.

Altcoin Season 2025 To Mirror 2024 Rally

In a follow-up post, Trader Tardigrade released a technical chart comparison, which suggests the altcoin season could start in the next few weeks. This time, the analysis focuses on the TOTAL2 index, which tracks the total market capitalization of all altcoins. 

The side-by-side chart compares the market behavior from late 2023 through early 2024 with the current price action from April through June 2025. In both periods, the market shows an initial strong upward move followed by a period of consolidation inside a descending channel. In early 2024, this channel breakout led to a significant altcoin rally.

Notably, the current 2025 chart appears to be repeating the same descending channel, with Trader Tardigrade projecting a potential altcoin season after the market experiences a pullback and breaks out of its present consolidation pattern.

Overall crypto market cap excluding BTC at $1.15 trillion | Source: TOTAL2 on Tradingview.com

Featured image from Unsplash, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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GameFi Guides

Hyperliquid, Solana Lead Altcoin Rally as Institutions Pour $1.9B Into Crypto Funds

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In brief

  • Altcoins including Solana, Hyperliquid and XRP posted gains Monday morning.
  • Ethereum also rose, as institutional flows hit their strongest levels since November.
  • Bitcoin dominance remains at 61.4%, with analysts watching for a break below 60% to signal full altcoin season.

The crypto market’s appetite for risk assets returned with force on Monday, with altcoins including Solana (SOL) and Ethereum (ETH) surging as traders rotated out of Bitcoin (BTC) following its successful test of the $106,000 level.

SOL is up 6.1% in the last 24 hours, trading at $155.78, while ETH stands at $2,611, gaining 3.7% in the past 24 hours, CoinGecko data shows.

Ethereum “came back into favour after 2.5 years of underperformance” following recent network upgrades, with the narrative shifting toward institutional adoption on Ethereum-based platforms, Sygnum analysts told Decrypt.

Meanwhile, XRP posted a gains of 4.6%, sending it to $2.26, and Cardano (ADA) rose 2.8% to $0.64 in the last 24 hours.

The broader altcoin rally swept across multiple tokens, with HyperLiquid (HYPE) leading the charge among mid-caps with a 9.7% surge to around $44.

The token has overtaken Dogecoin (DOGE)  to become the fifth-largest crypto by futures open interest, with traders placing $2.06 billion in active bets on HYPE contracts, per CoinGlass data.

Altcoin season incoming?

Market analysts are carefully watching whether this represents the beginning of a broader altcoin season or merely a temporary rotation.

Vadim Taszycki, Head of Growth at StealthEX, told Decrypt institutional interest was a primary driver, noting that “nearly $1.9 billion has flowed into crypto funds” over recent days, according to Farside Investors data.

He also pointed to regulatory momentum, mentioning “the wave of updated SEC filings from major asset managers aiming to launch spot Solana ETFs with staking capabilities” as evidence of shifting sentiment.

“While that attention helps push crypto into the mainstream, it also brings some hesitation, which may be delaying a full altcoin season for now,” the expert said.

The latest gains come despite last Friday’s sharp selloff triggered by Israeli airstrikes on Iranian targets, which sent Bitcoin tumbling 4% below $104,000.

Bitcoin has since recovered to $106,724, up by 1.6% in the last 24 hours, as markets viewed the geopolitical shock as a buying opportunity.

“As Bitcoin’s positive demand trends continue, driven by the steady progress in institutional adoption and its increased use as a safe haven asset, Bitcoin’s fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility,” Sygnum analysts pointed out.

Marcin Kazmierczak, Co-founder & COO at RedStone, told Decrypt the recent altcoin rally is “being driven by Bitcoin’s push past $100,000, with BTC dominance at 61.4%,” pointing to strong ETF inflows and technical breakouts as key drivers.

He added that “stablecoin supply held by whales (over $5M) has risen 5% in the past 30 days,” indicating increased buying pressure.

The expert expects a major altcoin surge between September and December, based on historical patterns.

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Altcoin ETF summer in limbo as SEC hits pause on DOGE, HBAR, and AVAX filings
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Altcoin ETF summer in limbo as SEC hits pause on DOGE, HBAR, and AVAX filings

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The U.S. Securities and Exchange Commission (SEC) has hit the pause button on several crypto exchange-traded fund (ETF) proposals, putting approval in doubt.

According to filings published this week, the SEC is delaying its decision for three ETF proposals, including Dogecoin, Hedera, and Avalanche.

The ETFs, filed respectively by Bitwise, Grayscale, and VanEck earlier this year, aim to launch spot ETFs backed directly by DOGE (DOGE),  HBAR (HBAR), or AVAX (AVAX), which would offer investors regulated access to the assets if approved.

However, the SEC stated it needs more time to assess the proposals. Citing concerns around investor protection and market integrity, the regulatory commission noted it is opening proceedings to allow for further analysis of whether the ETFs meet legal standards.

“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the releases read. “Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”

While not an outright rejection, the SEC’s move contrasts sharply with industry expectations. Earlier this week, Bloomberg analyst James Seyffart placed odds of approval for each of the assets around 75% to 80%, fueled by reports of positive engagement among the commission and issuers. 

The regulatory decision quickly rippled through the markets, dampening investor sentiment and triggering a sell-off across the three tokens. AVAX recorded the biggest loss, falling 12.5% from around $21.25 to $18.60 in a matter of hours. HBAR followed with an 11.5% slide, dropping from $0.1708 to $0.1512.

Despite being the least affected of the three, DOGE also dropped significantly, shedding 10.2% from $0.1906 to $0.1711. While all three tokens have shown minor recoveries since the initial dip, they remain in the red as uncertainty around ETF approval lingers.



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rally to $111k likely as soft CPI print fuels rate cut talks
NFT Gaming

Watch out for US crypto stocks that could outperform Bitcoin and altcoin bags

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Bitcoin rallied past the $110,500 level on Monday. The largest crypto is down nearly 2% as bullish momentum slowly fades. Interestingly, US crypto-linked stocks rose alongside Bitcoin and are currently consolidating alongside the largest crypto. 

Crypto stocks posted double-digit gains in the past month even as Bitcoin (BTC) yielded a modest increase of under 4%. In this deep dive we compare the performance of crypto stocks, Bitcoin and altcoins and examine the profitability of the sector in a traders’ portfolio. 

US crypto stocks vs. Bitcoin performance

Crypto-linked stocks in the US kicked off the week with a rally alongside Bitcoin. BTC tested resistance above the $110,500 level and started consolidating, crypto-linked mining stocks and stocks of major crypto firms wiped their recent gains on Tuesday.

More corporates adopted Saylor’s strategy of adding Bitcoin to their treasury, and Circle made a stellar IPO debut on Nasdaq last week. These developments are key catalysts driving Bitcoin’s gains and the rise in US crypto stocks. 

Circle Internet Group (CRCL), one of the largest stablecoin issuers, wiped out nearly 8% on the day, down to $106.62. The stock erased its Monday days nearly entirely. 

Core Scientific Inc. (CORZ), CleanSpark Inc. (CLSK), and MARA Holdings Inc. (MARA), key crypto mining stocks, observed small changes in their price on Tuesday. CORZ is down 0.12%, CLSK is up 0.10%, and MARA gained 0.25% on the day. 

Riot Platforms Inc. (RIOT) gained 0.60% on Tuesday. 

Bitcoin slipped closer to its support at $108,000 on the day, as crypto stocks continued their consolidation. Bitcoin’s correlation to the S&P 500 has recently dropped, which supports a thesis of equity investors choosing to gain exposure to crypto through stocks, instead of direct access to tokens that entails the risk of custody and security. 

Bitcoin and S&P 500 correlation | Source: 10xResearch.com

The decline in crypto stocks like CRCL, Coinbase (COIN), KULR Technology Group Inc. (KULR), and Robinhood Markets Inc. (HOOD) presents an opportunity for sidelined buyers to consider adding crypto stocks to their portfolio, and balance against their crypto token holdings this cycle. 

If Bitcoin’s correlation with S&P 500 weakens further, it is likely that crypto stocks outperform BTC and altcoin holdings this cycle. 

Nasdaq newcomer takes a hit this week

Circle’s stock is facing a sharp sell-off after its rally following its debut in the US. After its peak on Monday, CRCL observed a steep decline throughout the early trading hours on Tuesday. CRCL rallied pre-market and the all-time performance remains above 50% for the stock. 

Tuesday’s intraday chart for CRCL shows a steady downward trend on the day, it remains to be seen whether CRCL will make up for its losses. 

CRCL price chart | Source: Yahoo Finance

US crypto stocks are attracting inflows and interest 

While Bitcoin investment funds struggle with institutional capital inflows according to the latest Digital Asset Flows Report from CoinShares, the combined market value of publicly listed crypto companies has surpassed $300 billion. 

The inflow to firms behind US crypto stocks has observed an increase in inflows amidst Bitcoin’s consolidation in the past few weeks. The demand for exchange stocks, Bitcoin mining stocks, and stablecoin issuer Circle’s CRCL keeps rising. 

Bitcoin’s rising hashrate has increased the competition between miners, and regulations like the GENIUS Act support a pro-crypto environment for further growth in crypto stocks. 

Analysts at 10xResearch believe that the rise in Robinhood’s crypto revenue and Coinbase’s stock being undervalued at the time of writing is a sign of a structural shift in the market. Retail investors eyeing a piece of Bitcoin are likely attracted to crypto stocks, in light of higher regulatory clarity on holding and taxation of cryptocurrencies. 

Bitcoin price analysis 

Bitcoin price is less than 2% away from its all-time high of $111,980. A re-test of the previous all-time high and a daily candlestick close above this level could push BTC into price discovery. The BTC/USDT price chart shows $122,172, the 127.2% Fibonacci retracement level of the rally from the April low of $74,500 to the all-time high could be the next target for Bitcoin. 

Technical indicators, RSI and MACD support further gains in Bitcoin. RSI reads 62, above average but under the overvalued level at 70. MACD flashes green histogram bars above the neutral level, meaning that the underlying momentum in Bitcoin price trend is positive. 

BTC/USDT daily price chart | Source: Crypto.news 

Bitcoin is 11% away from the 127.2% Fibonacci retracement level and BTC could find support at $106,488, the lower boundary of the FVG on the daily price chart. 

Ruslan Lienkha, Chief of Markets at YouHodler told Crypto.news in a written note that there is a strong possibility that Bitcoin hits a new all-time high. 

Lienkha said, “…As the price currently stands just a few percentage points below its previous peak. Broadly speaking, financial markets remain optimistic. The S&P 500, for example, is trading approximately 3% below its all-time high. However, the risk of a reversal remains, particularly if upcoming economic data disappoints. 

All eyes are now on tomorrow’s U.S. inflation report. While markets are pricing in a moderate uptick, a higher-than-expected reading could trigger increased volatility across risk assets, including cryptocurrencies.”

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.



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