A significant whale recently sold off its altcoin holdings after a failed bet on Ethereum ecosystem tokens. The current market cycle may not see an “alt season” due to changes in market dynamics. However, the upcoming launch of a spot ETH ETF could potentially cause a rally in altcoins due to their high correlation with Ethereum.
As the crypto market consolidates, altcoins are showing mixed signals ahead of the spot ETH ETF launch. Many believe that the alt season may not occur in this cycle, but two key metrics suggest otherwise.
Data from Lookonchain reveals that a notable whale/institution sold off most of its altcoin holdings on Wednesday. The whale had initially purchased ETH and other Ethereum-related tokens after the SEC approved ETH ETF issuers’ filings. However, the market downturn following the SEC’s delay in approving registration statements has led to caution among investors.
The whale sold off several altcoins at a loss but made a profit on ETH. Despite realizing losses, the whale still holds some altcoins. This move reflects sentiments from traders who believe that most altcoins have already reached their highs for this cycle.
The current market cycle seems to be following a different trajectory compared to previous cycles, with the launch of the Bitcoin ETF being a significant factor. While some traders expect an “alt season,” others believe that the market has evolved with the introduction of new projects and tokens.
Despite the uncertainty, the “alt season” narrative may still play out. Santiment data shows that most altcoins are in a buy zone based on their MVRV ratios. Additionally, the expected launch of spot ETH ETFs could trigger a rally in Ethereum and its related altcoins.
Overall, the crypto market is facing uncertainty as investors navigate through changing market dynamics. The launch of spot ETH ETFs could potentially impact the performance of altcoins in the Ethereum ecosystem.