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- The recent Bitcoin price pump towards $65k increased FOMO traders in the altcoin industry amid the anticipated listing of spot Ether ETFs next week.
- Heightened demand for digital assets year to date has surpassed historical figures, thus signaling a super cycle ahead.
As the crypto industry registered a general-wide correction last week, digital asset investment products posted a total cash inflow of about $1.44 billion led by Bitcoin (BTC). According to a weekly report by CoinShares, the year-to-date cash inflows to digital asset investment products have reached $17.8 billion, thus surpassing the 2021 record of about $10.6 billion in the same period.
The flagship coin recorded its 5th largest weekly cash inflow of about $1.35 billion. Ethereum (ETH) registered a total cash inflow of about $72 million, while Solana (SOL) and XRP recorded a cash inflow of about $4.4 million and $1 million respectively. CoinShares noted:
We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the US prompted investors to add to positions,
Rising Crypto Demand Against All Odds
The demand for digital assets has skyrocketed recently fueled by institutional investors seeking to diversify their portfolio. Despite the recent $2 billion Bitcoin sale by the German government, the flagship coin managed to rebound above $63k in the past two days.
According to on-chain data, the leading stablecoin issuer Tether minted 1 billion USDT on the Tron network on Tuesday, signaling increasing overall buying pressure.
The crypto market maintained a bullish outlook even after reports that Mt.Gox had sent more than 91k Bitcoins to Kraken for distribution in the next two weeks. As a result, Bitcoin’s fear and greed index surged to around 65 percent, greed, on Tuesday, up from 25 percent, extreme fear, last week.
Altseason on the Horizon
The ongoing mainstream adoption of digital assets and web3 projects led by institutional investors has increased the odds of an altseason in the near term. Furthermore, the US SEC issued a preliminary approval for three spot Ether ETF issuers to begin trading on Tuesday next week.
The highly anticipated altseason will be triggered by the inevitable reversal of Bitcoin dominance which has been at the 50+ levels. The weekly Relative Strength Index shows that the crypto asset is not overbought, indicating demand could rise. As we previously reported, most of the altcoins will rally at least 10x in the coming months in preparation for the euphoric phase.
Additionally, the high chance of Donald Trump winning the US elections in 2024 has increased hope for crypto development and mass adoption.
When Parabolic Rally?
According to veteran trader Peter Brandt, the crypto market could begin its much-anticipated parabolic phase, which will pump Ether to a new all-time high, in the coming months. The analyst based his argument on the fact that most digital assets have already reached a correction bottom after consolidating in the past four months.
Image Source: Peter Brandt
As we previously noted, Bitcoin price will lead to a fresh crypto rally in the fourth quarter, triggered by the highly anticipated interest rate cuts and general elections in the United States.
