Altcoins (TOTAL3) market cap is still 70% below their previous highs, while Bitcoin is near its all-time high (ATH). Market experts suggest that the stage is set for a major rally in altcoins, supported by positive developments such as the approval of the Spot Ethereum ETF by the US Securities and Exchange Commission (SEC) on 4th July.
Additionally, new ETF applications for Solana by VanEck and 21Shares are also positively impacting market sentiment, shifting interest from Bitcoin to altcoins.
Ethereum’s Performance Against Bitcoin
The month of June has ended on a positive note with Bitcoin price climbing back to $63.7k from its initial drop of $58.560. Meanwhile, Ethereum (ETH) has shown a strong performance against Bitcoin (BTC).
According to market analysts, the last time ETH broke through its resistance against BTC, it triggered a seven-month-long altcoin season from March 2021 to November 2021. While there were fluctuations during that period, the overall rise in altcoin values was remarkable.
Market analysts suggest that Bitcoin might be entering a consolidation phase following its recent parabolic rise. This could set the stage for Ethereum and other altcoins to experience exponential growth.
Ethereum, as the leading altcoin, seems poised to outperform Bitcoin significantly, especially with the possible launch of Ethereum ETFs trading by July 4.
Waning Bitcoin Dominance
The BTC dominance (BTC.D) monthly chart shows Bitcoin testing its long-standing resistance line, which has been held since March 2017. Historically, every time BTC dominance hits this resistance and falls back, Ethereum and other altcoins have shown substantial recovery.
A decline in BTC dominance indicates that altcoins are gaining value faster than Bitcoin, often signaling the start of an altcoin season.
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