With the crypto market on a notable uptrend, altcoins are starting to gain traction, with Bitcoin (BTC) consolidating just below its recent high of $99,540.
This change has led to a significant capital rotation into altcoins such as Cardano (ADA) and XRP, both of which have outperformed many of the top 10 cryptocurrencies over the past month.
Possibility of altcoin ETF being launched in 2025
Market analyst Dr. Proffitt recently shared his insights on social media platform He emphasized that he was accumulating Bitcoin.
According to his analysis, over the past three to five weeks, these whales have accumulated $1.6 billion worth of Bitcoin. On the contrary, retail traders appear to be sidelined, mostly holding USDT, as they panic sell for no apparent reason.
Dr. Profit also pointed out that Ethereum (ETH) is currently “undervalued” according to the Market Value vs. Realized Value (MVRV) chart and is showing signs of upward momentum.
This month alone, exchange-traded fund (ETF) inflows reached 245,000 ETH, with Ethereum ETFs outpacing Bitcoin ETF inflows for the first time, indicating a significant shift in institutional investor interest.
Analysts say the market is pricing in the potential launch of altcoin-focused ETFs in 2025, with asset managers such as Bitwise and Canalei Capital, among others, predicting that these index funds will The company has indicated that it is filing an S-1 to invest in the coin, XRP. , Hedera.
Bitcoin will reach $130,000 in 2025
According to Dr.Profit, the market is entering the “altcoin season” after a period of stagnation. He predicts that the upcoming XRP ETF, which is rumored to be launched by major financial institutions such as BlackRock and JP Morgan, will further increase interest in the altcoin market.
Digging into market dynamics, Dr. Profit highlights the importance of the market capitalization ratio of Bitcoin and altcoins. In previous market cycles, a decline in this ratio has indicated that a Bitcoin correction is imminent.
For example, at its peak in April 2021, Bitcoin's market capitalization was $1.2 trillion, while altcoins' valuation was $984 billion, a healthier 50% ratio. However, when this ratio dropped to 20% and then to 18%, Bitcoin faced a significant correction.
Currently, the altcoin market is undervalued compared to Bitcoin, at an extreme 95%. This discrepancy suggests that Bitcoin is overvaluing the altcoin market, which Dr.Profit views as a positive indicator for both sectors.
Further, analysts believe that supported by the expected altcoin ETFs, the altcoin market cap could reach $1.4 trillion by the first quarter of 2025, while Bitcoin could reach around $130,000. I'm predicting.
The daily chart shows that the price of XRP is on an upward trend. Source: XRPSDT on TradingView.com
At the time of this writing, XRP, the third largest digital asset on the market, is trading at $2.73 and has seen a significant rise in market capitalization towards the $152 billion mark, with this metric for this token has reached an all-time high.
Featured image from DALL-E, chart from TradingView.com
