Bitcoin’s Rise Slows as Altcoins Rally and New U.S. Crypto Rules Take Shape: Sygnum – Crypto News – Crypto News
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Bitcoin’s Rise Slows as Altcoins Rally and New U.S. Crypto Rules Take Shape: Sygnum Bitcoin’s Rise Slows as Altcoins Rally and New U.S. Crypto Rules Take Shape: Sygnum

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Bitcoin’s Rise Slows as Altcoins Rally and New U.S. Crypto Rules Take Shape: Sygnum – Crypto News

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11 months ago

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Sygnum’s latest report shows Bitcoin’s strong momentum from ETF inflows and low supply is facing pressure as altcoins gain ground.

Bitcoin is still trending up on strong exchange-traded fund (ETF) demand and low exchange reserves, but its dominance is slipping as altcoins rally and regulations evolve, crypto bank Sygnum said in a new Q3 report.

Bitcoin (BTC) ETF assets have now surpassed $160 billion, with more than 110,000 BTC added last quarter alone, the report notes. At the same time, exchange reserves have dropped to a near seven-year low, tightening available supply. According to CryptoQuant data, BTC reserves across exchanges currently sit at around 2.37 million coins.

BTC Exchange Reserves

Earlier this year, Bitcoin surpassed Google to become the sixth-largest asset globally by market capitalization, “further cementing its status as a credible macro asset in global markets,” the report reads. BTC is currently trading at around $117,000 with a market cap of $2.3 trillion, according to CoinGecko.

Bitcoin’s dominance also recently hit its highest level since early 2021 – but that trend has reversed, with its share of the market falling more than 6% amid a broader altcoin rally, led by large-caps like ETH, XRP and BNB. Currently, BTC dominance hovers around 61%, according to TradingView data. Moreover, with regulatory clarity expected to further boost the altcoin space, Bitcoin’s dominance could continue to slide, the report said.

BTC Dominance chart
BTC Dominance

These findings point to a shift in the crypto market, with Bitcoin still leading but interest spreading to other coins as investors seek to capitalize on opportunities beyond just BTC.

Most recently, the total cryptocurrency market cap crossed the $4 trillion mark for the first time, led by surging valuations of altcoins such as Ethereum (ETH) and Ripple (XRP). ETH traded as high as $3,864 over the weekend – its highest level since December 2024. It has since retraced to $3,767.

The report notes that sentiment around Ethereum has recently shifted partly because of its successful Pectra upgrade, which raised the staking cap from 32 to 2048 ETH and implemented several core improvement proposals (EIPs).

“Ethereum’s tailwinds have also led to exchange reserves returning to cycle lows, with market data revealing large whale accounts accumulating Ether and a steady rise in on-chain transactions and active users,” the report added. “If these demand trends pick up in the coming quarter, we cannot rule out the possibility of a supply squeeze and an upward price shock.”

Meanwhile, XRP last week reached an all-time high of $3.64. Currently, the token is trading at $3.11, down 12% over the past week.

“As regulatory clarity extends to altcoins, capital could rotate towards projects with real economic use cases and sustainable token models, and perhaps this shift is already underway as some sectors currently show,” Sygnum’s report reads.

This rally comes on the heels of the U.S. House of Representatives passing three major cryptocurrency bills: The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the Clarity Act, and the Anti-CBDC Surveillance State Act.

The GENIUS Act sets rules for stablecoins, while the Clarity Act creates a regulatory framework for digital assets. Meanwhile, the Anti-CBDC Surveillance State Act bans the conception of a federal digital dollar.

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