Altcoin season index surpasses 50, reaching its highest point since late last year, along with the explosion of Capital in ETH Futures Contract and ETH ETF capital inflow exceeding Bitcoin.
The cryptocurrency market is witnessing a strong shift by institutional funds, especially after the new GENIUS law helps clarify the legal framework for stablecoin, creating momentum for ETH and Layer 1 to attract corporate assets.
- Altcoin season index increases beyond 50, highest since December last year.
- ETH perpetual contract Capital increases from $18 billion to $28 billion in one week.
- ETH ETF capital flow exceeds BTC, demonstrating institutional investors' interest in ETH.
What is the altcoin season index and why is it important?
The altcoin season index measures the strength and price trend of cryptocurrencies outside of Bitcoin. According to QCP Asia's analysis, this index has just crossed the 50 threshold, the highest since December last year, indicating that the altcoin cycle is showing strong signs of explosion.
A high altcoin season index reflects investors' capital shift from Bitcoin to altcoins, opening up more diverse profit opportunities in the cryptocurrency market. This is also a signal that technical and fundamental analysts pay attention to in order to forecast long-term trends.
Why did ETH futures contract Capital surge?
ETH perpetual contract Capital increased from $18 billion to $28 billion in just one week, a clear sign of strong entry from institutional investors. The main driver is the approval of the GENIUS law, establishing a transparent legal framework for stablecoin, thereby consolidating confidence in the legal environment for Ethereum and Layer 1.
According to the CEO of QCP Asia (2024), "Clarity in regulations brings a major step forward for organizations seeking safe investments and optimizing stablecoin use in corporate treasury". This is the reason why many corporate finance departments are shifting to ETH.
"Creating a clear legal framework for stablecoin through the GENIUS law helps ETH and Layer 1 become the top choice for corporate asset management."
CEO QCP Asia, 6/2024
What does ETH ETF capital flow exceeding BTC mean?
After many days, investment capital into the ETH ETF has remained at a higher level compared to Bitcoin. This event shows a change in the psychology and strategy of major investors, prioritizing ETH over BTC in a market expecting approval of a pledged version ETF.
Financial experts note that ETF capital flow is an important indicator of market attraction and long-term investment demand. When ETH ETF attracts strong capital, this consolidates ETH's market position and signals a potential new altcoin cycle.
What is the current market share of BTC and ETH?
In the past week, Bitcoin's market dominance has decreased to 60%, while Ethereum's market share increased to 11.6%. This is a clear sign of capital shift from BTC to ETH and altcoins, in line with the predicted altcoin cycle.
The decrease in BTC dominance does not mean weakness but reflects a more diverse capital allocation by investors, helping the cryptocurrency market develop more balanced and sustainable in the long term.
"A diverse market, with balance between BTC and ETH, will create a solid foundation for global cryptocurrency development."
Cryptocurrency financial analyst, Q2/2024 report
Frequently Asked Questions
Does the altcoin season index change quickly?
This index reflects market trends changing quite rapidly, especially when there are legal news or major events affecting institutional investment capital.
Why is ETH ETF attracting more capital than BTC ETF?
Due to expectations of approval and advantages from the new legal framework for stablecoin, institutional investors are pushing capital into ETH, increasing liquidation and long-term confidence.
What does ETH perpetual contract Capital mean?
The index represents the scale of transactions and interest from professional investors; high open capital means an increase in activity and liquidation in the ETH market.
Is BTC losing market dominance a bad sign?
Not necessarily, it shows more diverse capital allocation among cryptocurrencies, supporting balanced development of the entire cryptocurrency ecosystem.
How does the GENIUS law affect the cryptocurrency market?
This law creates a clear legal foundation for stablecoin, helping to attract institutional investment and increase market confidence, thereby promoting the strong development of Layer 1 projects like Ethereum.
