Emily Walker
The cryptocurrency market is currently seeing a noticeable upward trend, with altcoins gaining prominence as Bitcoin (BTC) stabilizes just below its recent all-time high of $99,540.
This change has prompted a significant shift in investments towards altcoins, including Cardano (ADA) and XRP, both of which have outperformed numerous top cryptocurrencies in the past month.
Possible Altcoin ETF Introductions in 2025
Market analyst Doctor Profit recently shared observations on the social media platform X (formerly Twitter), indicating a trend where while retail investors appear to be offloading their assets, cryptocurrency whales are rapidly accumulating Bitcoin.
In his analysis, he highlighted that these whales have purchased $1.6 billion worth of Bitcoin over the past three to five weeks. On the other hand, retail investors seem to be on the sidelines, mainly holding USDT as they panic sell without clear reasons.
Doctor Profit further pointed out that Ethereum (ETH) currently appears “undervalued” based on its market value to realized value (MVRV) chart and is exhibiting signs of positive movement.
This month, there have been 245,000 ETH inflows into exchange-traded funds (ETFs), which have outpaced Bitcoin ETF inflows for the first time, indicating a change in institutional interest.
The analyst believes that the market is preparing for a possible launch of altcoin-focused ETFs in 2025, as asset managers like Bitwise and Canaray Capital have filed S-1 forms for index funds targeting investments in Solana, Litecoin, XRP, and Hedera.
Bitcoin Projected to Hit $130,000 by 2025
Doctor Profit claims that the market is entering an “altcoin season,” putting previous stagnation behind it. He anticipates that the upcoming XRP ETF, reportedly being launched by major financial players such as BlackRock and JPMorgan, will further boost interest in altcoins.
Examining market dynamics, Doctor Profit highlights the significance of the Bitcoin to altcoin market cap ratio. In prior market cycles, declines in this ratio indicated upcoming corrections for Bitcoin.
For example, in April 2021, Bitcoin’s market cap was at $1.2 trillion, with altcoins at $984 billion, reflecting a healthier 50% ratio. However, when this ratio dropped to 20% and later 18%, Bitcoin encountered significant corrections.
Currently, the altcoin market appears undervalued compared to Bitcoin, with the ratio extremely high at 95%. This suggests Bitcoin may be overvaluing the altcoin market, a situation that Doctor Profit views positively for both markets.
Moreover, the analyst forecasts a strong altcoin market cap of $1.4 trillion by the first quarter of 2025, bolstered by the anticipated altcoin ETFs, while Bitcoin could approach around $130,000.
As of now, XRP, the third largest digital asset, is trading at $2.73, experiencing a significant market cap increase nearing $152 billion, marking a new all-time high for the token.
Image sourced from DALL-E, chart from TradingView.com