Under the dual benefits of slowing inflation in the US and Saudi Arabia's commitment to invest $600 billion in the US, risk assets rebounded across the board last night (15th). QCP Capital pointed out in a market briefing that this wave of increase was most remarkable in the cryptocurrency market.
The S&P 500 index in the US rebounded over 18% from its April low, successfully reclaiming losses from this year, but the cryptocurrency market performed even more fiercely. Analysts point out that the rebound momentum of digital assets is continuing, mainly driven by progress in tariff negotiations and cooling inflation, which has revived market 'risk-on sentiment.'
Looking ahead, QCP Capital is optimistic about the further upward potential of digital assets, especially with Coinbase set to be included in the S&P 500 index, which is expected to become a short-term price catalyst.
Funds are leaving Bitcoin, with competitive coins taking the lead.
After the US announced the April Consumer Price Index (CPI) on Tuesday, the cryptocurrency market began to show signs of structural adjustment. According to SoSoValue data, Bitcoin spot ETFs had a net outflow of $96.14 million on that day; in contrast, Ethereum spot products saw a net inflow of $13.37 million, indicating signs of funds shifting from Bitcoin to mainstream competitive coins.
In terms of price performance, Ethereum and major competitive coins have clearly outperformed Bitcoin. In the past 7 days, Ethereum surged over 42%, surpassing the $2,500 mark; Solana (SOL) and Ripple (XRP) also rose over 18%. In contrast, Bitcoin's price hovered around $103,000, with a weekly increase of only 5.2%.
Observing market data also reveals signs of 'fund rotation.' TradingView data shows that Bitcoin dominance has fallen from about 65% to 62%, indicating that funds are gradually shifting from Bitcoin to other tokens.
BRN Chief Researcher Valentin Fournier pointed out that Ethereum and SOL have increased by 59% and 36% respectively this month, significantly surpassing Bitcoin's 22% increase.
Valentin Fournier stated: "Competitive coins once again lead the market rise, and the continuous rotation of funds into competitive coins remains the main trend at present."
Ethereum and SOL continue to perform strongly, which also confirms a point: when Bitcoin is consolidating at a relatively high level, competitive coins still have significant room for catch-up.
QCP Capital: Bitcoin's Role Pulling and Ethereum's Structure is Clearer
Regarding Bitcoin's relatively weak recent performance, QCP Capital pointed out in their report that the main reason is that Bitcoin is seen as 'digital gold' on one hand and as a high-risk asset on the other, leading to a tug-of-war that results in a lack of direction in the short-term market, causing the price to become stagnant.
In contrast, the narrative of Ethereum appears clearer and more powerful.
They further explained that currently, the funding rate for Ethereum remains neutral, and the options market shows a trend of 'puts outnumbering calls,' indicating that this wave of price increase is not driven by speculative overheating.
Additionally, QCP Capital also observed that long-term options trading for Ethereum is gradually returning, which may be an early signal that Ethereum will gradually become the focus of the next wave of asset allocation in the market.
"Bitcoin's high-level consolidation, is the 'competitive coin season' coming? Analysis: Investors are turning to buy Ethereum and SOL" This article was first published on (Blockke).
