While Retail Panicked, Smart Money Grabbed These Coins During the Dip

Updated 4 hours ago by · 2 mins read

The crypto market has recorded a surge in altcoin accumulation by smart investors, with many analysts expecting a major altseason ahead.

The crypto market faced a brutal $200 billion wipeout late last week, sending shockwaves through retail traders. Panic selling dominated as the Crypto Fear and Greed Index plunged to 28, a clear sign of widespread fear.

But while smaller traders rushed for the exit, whales and institutional investors bought altcoins at a discount. According to blockchain data provider Nansen, Ether.fi (ETHFI) saw $6.6 million inflows in the past day.

In the past 24 hours, Ethena ENA $0.58 24h volatility: 6.9% Market cap: $4.01 B Vol. 24h: $356.97 M also saw $4.2 million in whale accumulation, with the token already up by 10% on Oct. 1. Other major altcoins, including Maple Finance (SYRUP) and Avalanche AVAX $30.50 24h volatility: 4.2% Market cap: $12.87 B Vol. 24h: $1.09 B also recorded renewed interest among smart investors.

Ether to Lead Altcoin Season?

Lookonchain confirmed this trend, noting that Ether is still seeing substantial institutional buying. Two newly created wallets, believed to belong to Ethereum’s biggest corporate holder BitMine, received 51,255 ETH ETH $4 331 24h volatility: 4.7% Market cap: $522.29 B Vol. 24h: $42.29 B (worth $213 million) from FalconX on Sept. 30.

This surge comes alongside bullish ETF flows. After a week of outflows, Ethereum ETFs already recorded $674 million in net inflows this week.

With the SEC facing final approval deadlines for 16 altcoin ETFs in October, many analysts see October as a potential turning point. “An enormous moment for markets,” said ETF specialist Nate Geraci.

Crypto trader Merlijn also called the potential ETF approvals the “biggest catalyst” for a new altcoin season.

Altcoin Market Sees Improving Sentiment

The total crypto market cap excluding Bitcoin BTC $117 365 24h volatility: 3.5% Market cap: $2.34 T Vol. 24h: $64.74 B and Ethereum currently stands at $1.1 trillion, showing signs of stabilization.

On the daily chart of the total market cap except Bitcoin and Ethereum, Bollinger Bands are tightening, often leading to a breakout. The price is testing the middle band (20-day SMA) around $1.1T, suggesting a neutral-to-bullish setup.

Total market cap except BTC and ETH with RSI and Bollinger Bands | Source: TradingView

Meanwhile, if RSI surges further, it could confirm bullish momentum for top altcoins.

In the near term, traders should also watch out for token unlocks from Solana SOL $219.8 24h volatility: 5.6% Market cap: $119.52 B Vol. 24h: $8.94 B , SUI SUI $3.45 24h volatility: 7.5% Market cap: $12.51 B Vol. 24h: $1.37 B , and Aster (ASTER), which could bring temporary price pressure.

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