SOL and XRP Defy the Current Market Trend

SOL and XRP attracted $8.9 million and $8.5 million, respectively, defying the prevailing market trend.

With Bitcoin’s dominance under pressure, are we witnessing the dawn of an altcoin takeover?

Bitcoin (BTC) held strong above $90k on the charts, despite facing sell-offs that resulted in $430 million losses from major U.S. Bitcoin ETFs – Fidelity, Ark 21Shares, and Grayscale – experiencing heavy withdrawals.

Is Bitcoin’s grip slipping, allowing altcoins to shine as investors chase high-cap opportunities?

SOL & XRP Break the Trend

Digital asset funds suffered, with $415 million in outflows last week, according to CoinShares. Bitcoin took the biggest hit, shedding $430 million, while Ethereum saw modest outflows of $7.2 million, yet it is still up $785 million in net inflows this month.

Solana and XRP, however, defied this trend with notable inflows—$8.9 million and $8.5 million—respectively. Growing institutional interest in high-cap assets, and anticipation of potential ETFs in 2025, boosts the excitement around an altcoin season.

James Butterfill, CoinShares’ Head of Research, attributed the outflows to concerns over U.S. monetary policy and unexpected inflation data. This could be just the beginning, as elements like Trump’s tariffs, a soaring dollar, and high gold prices add pressure on the Fed’s hawkish rate-cut stance.

Is Bitcoin’s Dominance at Risk?

The current consolidation of Bitcoin has sparked discussions about a possible “breakout,” as historical trends indicate that dips can often precede significant price surges.

However, this cycle is shaped by macroeconomic factors. The recent dip below $100k was influenced by Trump’s tariff policy.

Bitcoin’s dominance (BTC.D) has dropped below 61%, as investors explore alternative options. With SOL and XRP benefiting from the ETF wave, along with strong communities and tangible use cases, BTC.D may face substantial competition going forward.

This shift is crucial to monitor in the upcoming months, especially amid rising macroeconomic uncertainty. The responses from BTC and major altcoins like SOL and XRP will be pivotal in validating this theory.