Market Update 24th December 2024
By Shikha Singh
After heavy losses in the past week, the crypto market experienced a relief rally, led by Ethereum (ETH), BNB, and Solana (SOL).
Although Bitcoin (BTC) briefly rose to $96k, it retraced to around $94k due to a lack of sustained bullish sentiment.
Despite this, Bitcoin has outperformed most altcoins over the past year, driven by institutional adoption.
On Monday, Ethereum saw significant inflows, with US spot Ethereum ETFs registering a net cash inflow of $130 million, bringing the total to $2.46 billion.
BlackRock’s ETHA alone saw inflows of over $89 million. In contrast, Bitcoin ETFs experienced net outflows, totaling over $1.1 billion in the past three days.
With Bitcoin dominance breaking out of a rising wedge, altcoins are expected to outperform Bitcoin in the coming months, particularly with more whale investors focusing on the altcoin market.
However, with over 12,000 altcoins in circulation, liquidity dilution means that not all altcoins will experience significant rallies.
As an “altseason” approaches, investors are advised to focus on DeFi tokens, memecoins, well-funded layer-two coins, and AI-focused tokens for better growth prospects.
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