Zooming in, it is still difficult to see any clear indications of capital rotation for this cycle.
Investors try to recover BTC losses when there is a sharp Bitcoin drop. On a quarterly basis, this rotation is still not showing.
Since the October 2016 crash, the XRP/BTC has dropped by nearly 30% and is now back to Q4 2024 level.
SOL/BTC also shows a similar pattern, with a drop of over 45% in the same time period. It has been a similar pattern to Bitcoin’s dominance, which is near 60%. However, there have not been any bids flowing back in BTC.
Together, BTC.D’s ongoing consolidation and the absence of rotational flows suggest that the classic altcoin seasonal structure is not present in this cycle.
This momentum has another important takeaway.
Altcoins have been capped so far. Bitcoin [BTC] Recently, we lost the $60k mark. This shows that large caps still follow BTC’s flows. In other words, if BTC does not regain momentum in the near future, then it is unlikely that large cap flows will increase. Ripple [XRP] You can also find out more about Solana [SOL] The noise level is likely to remain low.
It is important to ask what will happen when Bitcoin goes back to risk-on? mode?
The institutional flow and relative strength between XRP (Solar) and XRP
In a low-risk environment, the institutional flow tends to set prices rather than following them.
This is where the rotation to XRP, and SOL even in the face of a weaker market, begins to be noticeable. In the case of Solana this can be seen in increased RWA usage and continued stabilcoin expansion.
Circle’s network has generated another USDC 750 millions, and Solana has seen its total RWA value reach a record-breaking $3 billion. This reinforces the position of Solana as one of the leading venues for capital deployment on chain.
Ripple shows a pattern similar to this on the demand-side.
XRP is now faster than Bitcoin Ethereum [ETH] In weekly ETF flow for five weeks in a row, indicating persistent institutional interest even though sentiment is muted. XRP’s ETFs saw over $2 million of net inflows in the last week, while Bitcoin experienced a $19 million loss.
These flows, in the risk-off stage, cannot be random.
In fact, altcoins have been tracking Bitcoin in general, but the consolidation that has occurred around $60k BTC is pushing money into high cap coins. Both XRP, and SOL are seeing consistent capital flows, which reinforces underlying trends. institutional demand.
This clearly shows the high-caps that are most likely to outperform once BTC returns to a risky mode.
Final summary
- There is no strong altcoin rotate yet. XRP/BTC, SOL/BTC are still low and BTC dominates at around 60%.
- XRP, SOL and other cryptocurrencies are seeing a steady inflow of institutional money. This makes them leaders if BTC starts to take risks again.
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Source: ambcrypto.com
