Bloomberg Analyst Indicates Start of Altcoin Season Driven by Institutions
James Seyffart from Bloomberg has indicated that an altcoin season may be occurring, driven by institutional investment rather than retail speculation. Key factors include:
- Digital Asset Treasury Companies (DATCOs) are central to this momentum.
- Bitmine acquired $167 million in Ethereum, marking its second major purchase in two days.
- BNB Network Company increased its Binance Coin reserves by $33 million, making it the largest corporate holder globally.
These institutional treasury allocations have outperformed many rivals. Seyffart believes multi-asset ETFs could attract more attention compared to single-asset products.
ETF Developments
A number of crypto ETF applications await SEC approval, including assets like Dogecoin, Chainlink, and others. Basket-style products might capture significant institutional interest, reflecting a shift toward diversified exposure among investors.
Market Insights
The dominance of Bitcoin has dropped from 61% to 58%, indicating capital rotation towards higher-risk altcoins such as Ethereum and Solana. Historically, when Bitcoin dominance falls below 40%, altcoin rallies often follow.
Technical Analysis
The TOTAL3 chart shows a tightening structure near $1.04 trillion market cap, with horizontal resistance around $1.15 trillion. A breakout above this level could lead to $1.35 trillion, while failure to hold support near $1 trillion could retest lower levels between $930 billion and $950 billion.
Total market cap ex-BTC and ETH | Source: TradingView