Analysts claim crypto capital rotation is driving Ethereum, Cardano and Solana gains

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The Block2024/11/26 16:00

By:The Block

Quick Take Capital is flowing out of Bitcoin and into altcoins, according to QCP Capital analysts — with Ethereum, Cardano, and Solana seeing gains of 5%, 9%, and 4%, respectively, in the past 24 hours. Bitcoin’s increase was more modest at 1.5%. The shift in market sentiment is highlighted by a 13% jump in the ETH/BTC ratio, which has recovered from a low of 0.0318 last Thursday to 0.0371 today.

Analysts claim crypto capital rotation is driving Ethereum, Cardano and Solana gains image 0

Ethereum has seen a notable resurgence in the past 24 hours, gaining over 5%, while bitcoin traded up a more modest 1.5% over the same period. This shift in market dynamics is reflected in a 13% surge in the ETH/BTC trading pair, which rose from 0.0318 to 0.0371 in the past day — marking a significant recovery from its post-election low.

"After Bitcoin’s dip, Ethereum is staging a comeback, with signs the market is shifting flows to ETH and alts, as evidenced by a 13% surge in the ETH/BTC pair," QCP Capital analysts said.

Ethereum, Cardano, and Solana have posted gains of 5%, 9%, and 4%, respectively, in the past 24 hours, while Bitcoin's increase was more modest at 1.5%, according to The Block's Prices Page .

ETH/BTC trading pair is at a multi-month high. Image: TradingView

Market indicators reflect increased investor interest in Ethereum , with its decentralized finance sector seeing significant growth. Ethereum DeFi's total value locked has surged by 7% in the past week, now standing at $66.43 billion, according to DefiLlama .

The broader cryptocurrency market is being influenced by developments in traditional finance, including a rally in U.S. markets following president-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary, which boosted investor sentiment. The Dow Jones and SP 500 both hit record highs on Tuesday, with the Dow rising 123.74 points (+0.28%) to close at 44,860.31, reversing a drop of over 300 points earlier in the session. The SP 500 added 0.57%, closing at 6,021.63, while the Nasdaq Composite gained 0.63% to reach 19,174.30. Investors responded positively to Bessent’s "3 Arrows" strategy, which focuses on targeting a 3% budget deficit by 2028, 3% GDP growth, and a daily oil production increase of 3 million barrels.

The global cryptocurrency market cap stands at $3.4 trillion, an increase of 2.1% in the past 24 hours, according to Coingecko data . Bitcoin dominance is at 54.7% and Ethereum dominance is at 12.4%.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitcoin’s price has fallen by around 1.4% over the past day, as global markets reacted to the Federal Reserve’s December meeting minutes, which signaled the potential for a slower pace of rate cuts in 2025.Amid ongoing inflation concerns and uncertainty over political shifts, bitcoin is expected to consolidate between $92,000 and $95,000 in the short-term, QCP Capital analysts said.

The Block•2025/01/09 14:34

Fidelity sees Solana as a 'notable contender' but backs Ethereum's stronger fundamentals

Fidelity Digital Assets says Ethereum’s strong fundamentals give it an edge over Solana from a long-term perspective.Solana’s speed and low costs stand out, but Fidelity highlights its reliance on short-term trends like memecoin trading.Fidelity also expects bitcoin and other areas of crypto to perform well this year, noting it is “not too late” for investors to dive in.

The Block•2025/01/09 14:34