Bitcoin Breaks as Ethereum ETFs Surge: Altcoins Eye 2025 Rally!

After suffering significant losses over the past week, the cryptocurrency market experienced a relief rally in the last 24 hours, with Ethereum (ETH), BNB, and Solana (SOL) taking the lead. Bitcoin (BTC) briefly surged to $96,000, but a lack of sustained bullish momentum caused a quick pullback, with the price settling around $94,000 during the early European session on Tuesday, December 24.

While Bitcoin has led the market this year, many altcoins have shown stronger gains, with investors now expecting a major rally in the first half of 2025. Bitcoin’s performance has been impressive, boosted by growing institutional adoption, but its returns have been slowing, allowing some altcoins to catch up.

Ethereum Spot ETFs See Major Cash Inflows

Ethereum-focused exchange-traded funds (ETFs) in the U.S. have seen significant cash inflows, signaling strong investor confidence in Ethereum. On Monday, U.S. Ethereum spot ETFs recorded a net inflow of about $130 million, bringing the total to $2.46 billion.

BlackRock’s ETHA led the way with a net inflow of more than $89 million, now holding over 1 million ETH. Fidelity’s FETH also saw a $46 million inflow, raising its assets under management to more than $1.6 billion.

Bitcoin ETFs Face Outflows

On the other hand, Bitcoin-focused ETFs in the U.S., except for BlackRock’s IBIT, saw net cash outflows on Monday. Over the past three days, U.S. Bitcoin ETFs have experienced a cumulative outflow of more than $1.1 billion, signaling a shift in investor interest.

Altseason on the Horizon?

Technically, Bitcoin’s dominance has broken out of a rising wedge pattern that began early last year. This suggests that, with more whale investors moving into altcoins, the altcoin market could outperform Bitcoin in the coming months.

However, with over 12,000 altcoins in the market, there is more liquidity dilution, meaning that some altcoins may not fully participate in the expected rally.

Where to Look in the Altcoin Market

As the possibility of an altseason grows, crypto investors should focus on DeFi tokens solving real-world problems, community-driven memecoins, well-funded layer-two solutions, and AI-focused projects. These areas are expected to play a key role in the next major crypto rally.

The crypto world continues to move at lightning speed, with new opportunities emerging every day. We’ll keep you updated – right here on Coinpedia.