That's probably driven by market expectations of forthcoming Fed interest-rate cuts combined with record fiscal spending—essentially an amplified “Goldilocks” scenario. Yet, it raises the question: How much stimulus is too much?
Second, institutional flows reveal a divergence between bitcoin (BTC) and ether (ETH). The U.S. ether ETFs have registered a net investment of $3.69 billion this month, extending the four-month inflows streak. Bitcoin ETFs, in contrast, have seen an outflow of over $800 million, the second-highest on record. The difference is a sign of investor rotation into ether from its larger rival and possibly a bull run in altcoins ahead.
That brings us to the key trend to watch out for in the coming month: the boom in altcoin treasury companies.
"The rise of altcoin treasuries can be the decisive spark that ignites the final phase of the current market cycle and ushers in another wave of the altseason," said Ray Yossef, a crypto market analyst and founder of crypto app NoOnes.
Big names like BitMine, SharpLink, Galaxy Capital, Pantera and even corporations like Trump Media have begun focusing on blue-chip altcoins like ETH, SOL, BNB, and CRO as treasury-grade reserve assets, Yossef said in an email.
"Billions of dollars are being allocated and reallocated into these treasuries, and that institutional vote of confidence is boosting the perception of altcoins, signaling that institutional capital is no longer reserved exclusively for BTC," he said.
In his latest article, Arthur Hayes, CIO and co-founder of Maelstrom Fund, predicted that ENA, ETHFI, and HYPE will rally 51x, 34x, and 126x, respectively, by 2028.
Over the next 24 hours, BTC traders should keep an eye on $113,600, as this level may experience an increase in selling pressure from short-term traders who reach their breakeven. The market focus seems to be on smaller altcoins. The CoinDesk 80 Index was recently up over 4% on a 24-hour basis while the CoinDesk 20 Index added just 0.82%.
In key news, Bybit announced the addition of Volmex's bitcoin and ether implied volatility indices to its Advanced Earn Page, a hub for high-yield structured products. The move underscores the growing demand for volatility trading.
In traditional markets, bond yield curves continue to steepen across the advanced world, with longer-duration yields rising to multi-month/decade highs. Stay alert!
