The cryptocurrency market is witnessing a shift as Bitcoin cools off after reaching a peak, with investors gradually focusing on Ethereum and mid-cap Tokens.
This trend signals the early stage of altcoin season, with capital gradually shifting from Bitcoin to Ethereum and the broader market, supported by steady ETF inflows and predictions for ETF products for Solana, XRP.
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Early signs indicate that capital is shifting from Bitcoin to Ethereum and mid-cap Tokens.
Ethereum continues to lead thanks to stable ETF inflows, with Solana and XRP benefiting from ETF expectations.
Tokens with buyback-and-burn models and meme coin groups are seen as noteworthy opportunities in the altcoin cycle.
What is the first sign of capital shifting from Bitcoin?
Crypto analyst Lark Davis states that the current trend is similar to classic market cycles: Bitcoin leads the price increase, followed by Ethereum outperforming and finally capital flowing into small and mid-cap Tokens.
Observing the decline in Bitcoin's dominance, Davis noted that capital is beginning to shift to Ethereum, marking the beginning of an altcoin explosion.
This is a familiar cycle that has appeared multiple times in the history of cryptocurrency markets, reinforced by capitalization and trading volume statistics. This allows investors to forecast and optimize their portfolios according to capital trends.
Which prominent altcoins are attracting attention?
Davis has presented an investment strategy for the next phase, where Ethereum plays a key role by continuously outperforming Bitcoin, leading the overall upward trend.
Solana is expected to benefit significantly from future ETF products alongside its expanding DeFi and NFT ecosystem. XRP is also predicted to rise if related ETFs are approved or investment increases.
Additionally, Tokens with buyback and burn mechanisms such as dYdX, Hyperliquid, Jupiter, Raydium, and Chainlink are creating a reflexive economic model that helps sustain demand and long-term stable Token value.
What role does Buyback-and-Burn Tokens play in the current market?
Hyperliquid has used over $1.3 billion in transaction fees to buy back Tokens, contributing to a reduction in circulating supply and increasing the asset's attractiveness.
The adoption of this mechanism by many projects such as dYdX and Chainlink helps reinforce the reliability and value of Tokens in the market, creating sustainable growth momentum that outperforms competitors.
“Automation and buyback models are the key to ensuring Token survival and growth during periods of market volatility.”
– Lark Davis, Crypto Analyst, 2024
What is the impact of meme coins and Tokens related to AI and gaming trends?
Meme coins like BONK, PENGU, FART show that retail capital continues to play a rapid activation role in price increases due to liquidity and community appeal.
Moreover, Tokens in the fields of artificial intelligence and gaming are expected to attract new investments as the market evolves according to prominent technology themes.
What factors are driving this vibrant altcoin season?
Steady ETF capital flows, the gradual decline in Bitcoin's influence, and signs of capital beginning to shift to altcoins create a favorable environment for the breakout of many Tokens.
Based on recent market observations, this is considered one of the most vibrant altcoin cycles in recent years, providing attractive investment opportunities.
Frequently Asked Questions
What is altcoin season and why does it occur?
Altcoin season is the phase where market capital shifts from Bitcoin to other Tokens, driving altcoin prices up significantly. This phenomenon usually occurs after Bitcoin peaks, predicted by capitalization indicators.
What role does Ethereum play in the altcoin cycle?
Ethereum often leads the altcoin trend with support from stable ETF capital and a developing DeFi, NFT ecosystem, providing momentum for the entire cryptocurrency market.
How does the buyback-and-burn mechanism affect Token prices?
Token buybacks and burns reduce circulating supply, thereby increasing Token value and reinforcing investor confidence, a strategy adopted by many major projects to maintain their appeal.
Which altcoins should be noted in the current capital migration?
Ethereum, Solana, XRP along with Tokens like dYdX, Hyperliquid and meme coin groups like BONK, PENGU are prominent names recommended by analysts to watch.
How does ETF capital flow affect the cryptocurrency market?
ETF capital flows help attract institutional investors, increase liquidity, and facilitate sustainable development for Tokens in the long term.
Source: https://tintucbitcoin.com/altcoin-nen-mua-khi-altseason-den/
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