As the cryptocurrency market experiences a notable bullish trend, altcoins have begun to take center stage as bitcoin (btc) consolidates just below its recent all-time high of $99,540.
This shift has led to a significant capital rotation into altcoins like Cardano (ADA) and XRPwhich have outperformed many of the top ten cryptocurrencies over the last month.
Possible Altcoin ETF Launches in 2025
Market analyst Doctor Profit recently shared his insights on social media platform
According to your <a target="_blank" href="https://x.com/DrProfitCrypto/status/1863284729266532511″ target=”_blank” rel=”noopener nofollow”>analysisOver the past three to five weeks, these whales have accumulated $1.6 billion worth of bitcoin. In contrast, retail traders appear to be sidelined, primarily holding USDT while panic selling without clear justification.
Doctor Profit also noted that ethereum (eth) is currently “undervalued” according to its market value to realized value (MVRV) chart and is showing signs of upward momentum.
This month alone 245,000 eth have been seen on exchange traded fund (ETF), and ethereum ETFs surpassed bitcoin ETF inflows for the first time, indicating a significant shift in institutional interest.
The analyst suggests the market is pricing in a possible altcoin-focused ETF launch in 2025, with S-1 filings made by asset managers like Bitwise and Canaray Capital, among others, for these index funds to invest in Solana, Litecoin, XRP . and Hedera.
bitcoin will reach $130,000 in 2025
According to Doctor Profit, the market is entering “altcoin season” after previous periods of stagnation. Predicts the upcoming XRP ETF, rumored to be launched by major financial institutions such as BlackRock and JPMorgan, will stimulate further interest in the altcoin market.
Delving deeper into the market dynamics, Doctor Profit emphasizes the importance of the bitcoin and altcoin market cap ratio. In previous market cycles, a drop in this ratio has signaled impending corrections for bitcoin.
For example, during the April 2021 peak, bitcoin had a market capitalization of $1.2 trillion, while altcoins were valued at $984 billion, creating a healthier 50% ratio. However, when this ratio fell to 20% and then 18%, bitcoin faced substantial corrections.
Currently, the altcoin market is undervalued relative to bitcoin, with an extreme ratio of 95%. This discrepancy suggests that bitcoin is overvaluing the altcoin market, which Doctor Profit considers a positive indicator for both sectors.
The analyst further predicts a strong altcoin market capitalization of $1.4 trillion by the first quarter of 2025, supported by anticipated altcoin ETFs, while bitcoin could reach approximately $130,000.
At the time of writing, history in this metric for the token.
Featured image of DALL-E, chart from TradingView.com
