The crypto market has rebounded following a market correction, which began earlier in the week. This comes as altcoins like Ethereum, Solana, and Hyperliquid record renewed demand from investors.
Crypto Market Bounces With Notable Gains From Altcoins
The total crypto market cap rebounded from its intraday low of about $3.79 trillion to a range high of around $3.96 trillion on Wednesday. Bitcoin edged 2% from the intraday’s low to hover about $112,437 while Ethereum reclaimed the $4,600 price level.
The Solana price was the largest gainer among the top-ten altcoins by market cap, surging 8.7 percent to exchange hands around $210. Hyperliquid also recorded notable gains compared to the rest of the altcoins today, surging over 6 percent in the past 24 hours to reach a new all-time high (ATH) of above $50.
The total crypto market cap gained bullish sentiment, fueled by a sharp uptick in whales’ activity. For example, on-chain data analysis reveals that Tether minted $1 billion in USDT, which is usually bullish for crypto prices as it indicates demand from whales looking to invest in the market.
Furthermore, on-chain data shows that today’s crypto market gain was bolstered by renewed demand from whale investors. According to on-chain data analysis from Santiment, the Bitcoin network has recorded a jump of 13 addresses holding at least 1,000 BTC, thus increasing the cohorts to 2087 since the start of August.
Regarding the Ethereum network, on-chain data analysis reveals that wallets holding at least 10,000 ETH have increased by 48 addresses since the beginning of August. Consequently, the Ether addresses holding at least 10k ETH are about 1,275.
Capital Rotation Signals Altseason Ahead
The crypto market has recorded an increased capital rotation from Bitcoin to Ethereum and other altcoins in the recent past. For instance, the U.S. spot Ethereum ETFs have outpaced the Bitcoin counterparts by a huge margin in the past few weeks.
On August 26, BlackRock’s ETHE led the other issuers with a net cash inflow of about $323 million. As a result, the U.S. spot Ether ETFs recorded a net cash inflow of about $455 million, which increased their cumulative total net inflow to around $13.33 billion.
On the other hand, the U.S. spot Bitcoin ETFs recorded a net cash inflow of about $88 million. Notably, BlackRock’s IBIT recorded a net cash inflow of about $45 million, way lower than its Ether counterpart.
As a result, crypto experts are predicting an altseason to happen in the near future, potentially catalyzed by the anticipated Fed rate cut in September. Jerome Powell has already signaled a September rate cut at the Jackson Hole conference last week.
Ethereum is expected to lead the way when the altcoin season happens. Tom Lee recently predicted that ETH could reach $5,500 soon, a development that would provide a significant boost to the broader crypto market.
Coingape Staff
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