The cryptocurrency market has seen a significant shift in momentum over the past 24 hours, with Ethereum (ETH), BNB, and Solana (SOL) leading the way in a relief rally. Despite recent losses, Bitcoin (BTC) briefly surged to $96,000 before settling around $94,000 during the early European session on December 24.
While Bitcoin has been the star of the show this year, many altcoins have been gaining ground, leading investors to anticipate a major rally in the first half of 2025. Although Bitcoin’s performance has been strong, some altcoins have been able to catch up as its returns begin to slow down.
Ethereum-focused exchange-traded funds (ETFs) in the U.S. have been experiencing significant cash inflows, indicating a high level of investor confidence in Ethereum. On Monday, U.S. Ethereum spot ETFs saw a net inflow of $130 million, bringing the total to $2.46 billion. BlackRock’s ETHA and Fidelity’s FETH were among the top performers, attracting millions in inflows and increasing their assets under management.
On the other hand, Bitcoin-focused ETFs in the U.S. saw net cash outflows on Monday, except for BlackRock’s IBIT. This shift in investor interest has led to a cumulative outflow of over $1.1 billion from U.S. Bitcoin ETFs over the past three days.
Technically, Bitcoin’s dominance has broken out of a rising wedge pattern that began last year, indicating a potential shift towards altcoins outperforming Bitcoin in the near future. However, with over 12,000 altcoins in the market, there is a risk of liquidity dilution, meaning that not all altcoins may participate in the expected rally.
As the possibility of an altseason looms, crypto investors are advised to focus on DeFi tokens addressing real-world issues, community-driven memecoins, well-funded layer-two solutions, and AI-focused projects. These sectors are expected to play a crucial role in the next major crypto rally.
The cryptocurrency landscape is constantly evolving, presenting new opportunities every day. Stay updated on all the latest developments right here on Coinpedia.