$ETH

📉 Market Overview and Altcoin Sentiment

• Widespread Selling: Bitcoin's price dropped by up to 4%, while altcoins experienced sharp declines - Ethereum (-7%), Solana (-9%), Ripple (-3-5%) - as investors turned to traditional safe havens like gold (+1%) amid escalating geopolitical tensions in the Middle East.

• Market Cap Contraction: The total market capitalization of cryptocurrencies fell from around $3.47 trillion to $3.22 trillion within a few days.

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🔄 Signs of Altcoin Season and Rotation

• Altcoin Season Index: Binance reported an index reading of 25, down from a peak of 30 on June 11, indicating that 25% of the top 100 tokens are outperforming Bitcoin over 90 days. This suggests a redirection of capital towards altcoins. • Capital Cycle Ongoing: Analysts highlight the rising ETH/BTC ratio in Ethereum, along with increased Web3 investments in projects (around $3.8 billion in Q1 2025), as strong indicators of the beginning of altcoin season.

• Institutional Interest Boosts Altcoins: Bloomberg reported that hedge funds increased their exposure to altcoin exchange-traded funds by nearly 7% over the past month.