Meanwhile, market participants suggest that Ethereum will be the focus of investors in the upcoming cycle. This break in BTC.D indicates that capital is shifting from Bitcoin to altcoins. However, Bitcoin’s support zone around 60-61% may prevent altcoins from immediately rallying. 

New Capital Rotation Begins for Ethereum and Altcoins 

The decline in Bitcoin Dominance reveals that investors are seeking higher return potential. Especially, the ETH/BTC pair signals Ethereum’s strengthening against Bitcoin. Experienced traders compare current market dynamics to the 2021 altcoin season. 

Short-term market volatility may occur before the expected altcoin rally. However, once the capital rotation completes, investors are expected to initiate a significant growth movement in Ethereum and other altcoins. Investors should patiently follow this market transformation. Additionally, breaking the BTC.D support level between 60-61% will play a critical role in altcoins gaining momentum. 

Analyst Crypto Candy stated that if Bitcoin Dominance does not convincingly drop below the 60-61% support zone, altcoins may struggle to grow. The expert emphasized that while these levels hold, the altcoin market will lack sufficient momentum. During this period, altcoins may move slowly and experience minor pullbacks. 

In conclusion, the market structure is preparing the ground for an altcoin season. However, developments will progress gradually, and investors should position themselves according to short-term movements.

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Investors have once again focused on the possibility of a rate cut by the U.S. Federal Reserve. This development boosted interest in digital assets. Ethereum showed a strong recovery, climbing above the $2,590 level, while Dogecoin reached $0.171, regaining the ground it had lost over the past month. 

Meanwhile, Bitcoin traded at $109,200, recording a gain of over 3% on the day. It is now just 2% away from its all-time high of $111,814. 

Altcoin Rally Triggered by Ethereum and Dogecoin Surge 

The rise in the altcoin market wasn’t limited to prices alone. Zach Pandl, Head of Research at Grayscale, noted that investor interest is shifting towards Ethereum and other altcoins. According to Pandl, recently approved crypto exchange-traded products (ETPs) have facilitated institutional capital flowing into the altcoin market. 

Increasing regulatory clarity and interest from traditional financial institutions are boosting confidence in crypto. Pandl stated that many tokens could see new highs in the second half of the year. 

Meanwhile, Ripple has applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). The move is seen as an effort to expand crypto payment systems within a legal framework. 

Fed Rate Cut Expectations Revive Crypto Momentum 

Investors remain focused on potential moves from the central bank. Recent dovish remarks have raised hopes that the Fed may opt for rate cuts. This expectation has positively impacted not only crypto but also the stock markets. The Nasdaq and S&P 500 indexes closed the day with slight gains. 

However, global economic uncertainties persist. While the new trade agreement signed by U.S. President Trump with Vietnam was positively received, no progress was made in negotiations with China. Additionally, geopolitical risks in the Middle East and Ukraine continue to dominate headlines. 

Meanwhile, inflows into Bitcoin spot ETFs declined on Tuesday. The 15-day streak of positive inflows came to a halt, which analysts interpret as profit-taking. 

Joe DiPasquale, CEO of BitBull Capital, linked the rally to positive market sentiment. “Crypto typically gains strength through uncertainty and liquidity,” said DiPasquale, emphasizing that traders are ignoring macro risks and focusing on the possibility of looser monetary policy. 

In conclusion, investors continue to highlight the upward potential in the crypto market. 

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