Bitcoin Moves One Step Closer to ATH, Which Altcoin Will Follow?

7 hours ago by · 3 mins read

Bitcoin’s price edges closer to $107K amid declining Binance inflows, hinting at potential rallies for major altcoins like Solana and Ethereum.

Bitcoin BTC $107 555 24h volatility: 1.4% Market cap: $2.14 T Vol. 24h: $32.98 B price has recently registered promising price gains, bringing it closer to its last all-time high.

The spike in price has caught the broader cryptocurrency sector by surprise, and the question for many now hinges on the potential altcoin that will show the same positive traits.

BTC Inflows on Binance Drop Drastically

Bitcoin price has risen to $107,206.34, marking a 1.85% rally over the past 24 hours. Its market capitalization and trading volume currently stand at $2.13 trillion and $45.2 billion, respectively. Despite this slight recovery, signs of low volatility and uncertain macroeconomic conditions remain.

Darkfost, a well-known CryptoQuant analyst, has shared insights on the current outlook for the coin. Firstly, he noted that the analysis of Bitcoin inflows, rather than its outflows, is a better indicator and provides a more accurate picture of market sentiment. This is particularly true for Binance, which has the largest trading volume amongst its counterparts.

Data from 2020 onward shows that the monthly average of BTC inflows to Binance stood at around 12,000 BTC. However, this metric has fallen to just 5,700 BTC, even with the top coin trading around $107,000. The current value is even lower than recorded when the broader market faced an intense bear market.

For context, monthly inflows on Binance were capped at around 24,000 BTC when FTX imploded in 2022. This was a reflection of panic and large-scale selling pressure. The pattern highlights Binance dominance as a top platform where investors perform their transactions.

In addition, it is a confirmation that spikes in inflow are likely powered by selling pressure or fear-driven behavior. Based on the current outlook, Darkfost noted that the market appears to have entered a holding phase that could last for an extended period. He advised investors to exercise caution, as the market remains fragile.

Meanwhile, BTC’s recent price increase could serve as a foundation for other digital assets to rally. For instance, Solana SOL $144.3 24h volatility: 0.7% Market cap: $77.13 B Vol. 24h: $3.62 B price has been on a downtrend, going as low as $128 a few days ago.

With BTC in an uptrend, SOL price has equally spiked by 2.88% and is resting at $146.09. Sustained positive momentum for BTC may finally bring Solana to new highs.

Assets like Ethereum ETH $2 433 24h volatility: 0.4% Market cap: $293.89 B Vol. 24h: $15.91 B , XRP XRP $2.19 24h volatility: 0.7% Market cap: $129.00 B Vol. 24h: $2.24 B and Binance Coin BNB $647.2 24h volatility: 0.5% Market cap: $94.42 B Vol. 24h: $824.67 M may also trail a similar path, riding on their respective correlations with BTC to chart new growth course.

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