As the cryptocurrency market experiences a notable uptrend, altcoins are increasingly taking center stage while Bitcoin (BTC) consolidates just below its recent record high of $99,540.
This shift has resulted in significant capital rotation towards altcoins such as Cardano (ADA) and XRPboth of which have outperformed many of the top ten cryptocurrencies in the past month.
Potential altcoin ETFs will launch in 2025
Market analyst Doctor Profit recently shared insights on the social media platform
In his opinion analysisIn the last three to five weeks, these whales have accumulated $1.6 billion worth of Bitcoin. Conversely, retail traders seem to be left out, primarily holding USDT as they panic without clear justification.
Doctor Profit also noted that Ethereum (ETH) is currently “undervalued” and showing signs of bullish momentum, according to its market value to realized value (MVRV) chart.
245,000 ETH were registered this month alone exchange traded fund (ETF) inflows, with Ethereum ETFs surpassing Bitcoin ETF inflows for the first time, signaling a significant shift in institutional interest.
The analyst believes the market is pricing in a possible launch of an altcoin-focused ETF in 2025, with asset managers such as Bitwise and Canaray Capital having filed S-1 filings for these index funds’ investments in Solana, Litecoin and XRP, among others Hedera.
Bitcoin is expected to reach $130,000 in 2025
According to Doctor Profit, the market is entering “altcoin season” and has emerged from previous periods of stagnation. He predicts that the upcoming XRP ETF is rumored to be launched by large companies Financial institutions B. BlackRock and JPMorgan will continue to stimulate interest in the altcoin market.
Doctor Profit examines the dynamics of the market and emphasizes the importance of the Bitcoin to Altcoin market cap ratio. In previous market cycles, a decline in this ratio signaled impending corrections for Bitcoin.
For example, during the April 2021 peak, Bitcoin had one Market capitalization of $1.2 trillion, while altcoins were valued at $984 billion, giving a healthier ratio of 50%. However, when this ratio fell to 20% and later to 18%, Bitcoin suffered significant corrections.
Currently, the altcoin market is undervalued compared to Bitcoin, with the ratio sitting at an extreme 95%. This discrepancy suggests that Bitcoin is overvaluing the altcoin market, which Doctor Profit sees as a positive indicator for both sectors.
The analyst also predicts a robust altcoin market cap of $1.4 trillion by the first quarter of 2025, supported by expected altcoin ETFs, while Bitcoin could reach around $130,000.
At the time of writing, XRP, the third largest digital asset in the market, is trading at $2.73 and is witnessing a colossal increase in market capitalization towards the $152 billion mark, which is a new all-time high in this represents the key figure for the token.
Featured image of DALL-E, chart from TradingView.com