Bitcoin, Ethereum bleed as Solana, XRP gain – Is market sentiment changing?
With ETF momentum still in play for Solana and XRP, will altcoins continue to outperform?
- SOL and XRP defied the prevailing market trend, attracting $8.9 million and $8.5 million, respectively.
- With Bitcoin’s dominance under pressure, are we witnessing the dawn of an altcoin takeover?
Bitcoin [BTC] defied Trump’s tariff threats, holding strong above $90k on the charts. And yet, it couldn’t escape the sell-offs, shedding $430 million as major U.S Bitcoin ETFs – Fidelity, Ark 21Shares, and Grayscale – saw heavy withdrawals.
Is Bitcoin’s grip slipping, giving altcoins their moment to shine as investors chase high-cap opportunities?
SOL & XRP defy the trend
After 19 weeks of gains, digital asset funds took a hit, seeing $415 million in outflows last week, according to CoinShares.
Bitcoin took the biggest hit, shedding $430 million, while Ethereum saw modest outflows of $7.2 million. And yet, it was still up $785 million in net inflows this month.
Meanwhile, Solana and XRP broke the trend, pulling in $8.9 million and $8.5 million, respectively. With rising institutional interest in high-caps, the buzz around potential ETFs in 2025 and an altcoin season is stronger than ever.
Why? Well, CoinShares’ Head of Research, James Butterfill, linked the outflows to concerns over U.S monetary policy and higher-than-expected inflation data.
And, that might just be the beginning – Trump’s reciprocal tariffs, a skyrocketing dollar and gold prices, and 25% tariffs on key metals are only adding fuel to the Fed’s hawkish stance on rate cuts.
Is Bitcoin’s dominance under threat?
Bitcoin’s current consolidation has everyone talking “breakout,” with history suggesting that slumps often set the stage for major price surges.
What about this cycle? It’s a different story. Unlike past runs, it’s deeply intertwined with macro trends – Like the recent dip below $100k, sparked by Trump’s tariff policy.
In fact, Bitcoin dominance (BTC.D) slipped below 61% as investors flocked to alternatives.
With SOL and XRP riding the ETF wave, backed by strong communities and real use cases, it’s looking like BTC.D could face serious competition.
This shift is one to watch closely in the coming months, especially with rising macro uncertainty. How BTC and high-caps like SOL and XRP respond will be key to proving this theory.
