- BTC spot ETFs saw inflows of $723.20M, indicating strong institutional demand and bullish sentiment.
- BTC was highly traded, with strikes between $100K-$110K, showing traders’ bullish outlook.
- BTC dominance dropped to 57.4%, hinting at an upcoming altcoin season as profits shift to ETH and other altcoins.
Global markets rallied last night, driven by a weaker than expected CPI report that eased inflation concerns, according to QCP Broadcast. This led to Bitcoin (BTC) surging by 4.13%, reaching a peak of $100.8K before stabilizing just below $100K. Equity markets had similar optimism, with the S&P 500 rising by 1.83% and Nasdaq gaining 2.27%.
Bullish Inflows into Crypto ETFs
Both Bitcoin and Ethereum spot ETFs had substantial inflows, suggesting strong institutional interest. BTC spot ETFs recorded an impressive $723.20 million in inflows, the first net inflow after four days of net outflows.
Fidelity’s FBTC saw a daily net inflow of $463 million, while Ark Invest and 21Shares’ ARKB recorded $139 million per day. This shows increased institutional demand and hints at a promising outlook for digital assets.
Ethereum spot ETFs also had increased inflows, according to data from Sosovalue. On January 15, total net inflows reached $59.78 million, with Fidelity’s FETH contributing $29.32 million and BlackRock’s ETHA adding $19.85 million.
Rising Altcoin Momentum
The altcoin market is showing signs of gaining momentum, driven by declining Bitcoin dominance. BTC dominance fell from 58.6% to 57.4%, suggesting a potential shift of capital into altcoins.
If BTC dominance breaks below the 57.3% support level, it could confirm the start of an altcoin season. The rising market share of altcoins is further supported by XRP led rallies and increased market cap performance.
On a 4-hour timeframe, the total market cap excluding BTC and ETH is at $1.05 trillion. The market cap’s performance, up by 4.64%, points to continued capital inflow into altcoins despite some fluctuations in BTC dominance.
Technical Indicators Signal Potential Pullback
The RSI for altcoins is nearing overbought levels at 68.72, suggesting a potential pullback or consolidation. Previously, RSI bounced from 62.43, supporting the bullish sentiment. The MACD line, currently at 23.17 billion, remains above the signal line at 14.98 billion, confirming strong upward momentum.
Positive histogram bars indicate a continuation of bullish momentum if sustained. Market trends suggest that if the total market cap holds above $1.05 trillion, a short term target of $1.10 trillion could be achievable.
However, a drop below $1.03 trillion may signal a correction. According to QCP Broadcast and supported by data from Sosovalue and Santiment, the current market outlook remains bullish and could rally if key levels hold.