Macro Improvement Strengthens the Market

Bitcoin climbed above the 90,000 level during the day, increasing buying appetite. Ethereum rose 3% and surpassed 3,000 dollars, forming a positive price action ahead of the December 3 Fusaka upgrade. Solana gained 4%, BNB rose 5%, while Cardano held above 0.15 dollars. XRP’s 2% increase supported the overall market recovery. The broad-based rise in altcoins strengthened confidence.

The improvement gained speed with expectations that the Fed could cut interest rates. Slowing inflation and a cooling labor market pushed the probability of a December rate cut to 85%. This environment boosted risk appetite. The movement in tech stocks carried momentum into digital assets. Investors, seeing recession risks weaken, took more aggressive positions. This behavior supported crypto and strengthened the upward setup.

The drop in weekly U.S. jobless claims to a seven-month low became one of the strongest signals shaping market direction. This decline suggested a soft landing rather than a sharp slowdown. Investors interpreted this as a reassuring sign, accelerating the shift into risk assets. This behavior directly reflected on the crypto market.

ETF Developments Boost Demand

Anticipated spot ETF processes for Ethereum, Bitcoin, XRP, DOGE, and Solana injected new energy into the market. Bitwise’s Avalanche ETF announcement strengthened the positive atmosphere. On November 26, Ethereum spot ETFs recorded four consecutive days of inflows totaling 60.82 million dollars. Bitcoin products saw 21.12 million dollars in net inflows, while Fidelity’s fund declined. XRP products recorded 21.81 million dollars in inflows. Although Solana ETFs saw an outflow of 8.1 million dollars, overall demand remained strong.

The rapid decline in Bitcoin funding rates provided an additional signal for the market. As rates stay in negative territory, the outlook becomes more positive. Negative funding shows that traders who doubt the rally are opening short positions. As price rises, this creates liquidity pressure on shorts. Since markets often move against expectations, this structure becomes a mechanism supporting the upward trend.

Kaspa rose 20%, while SPX and Flare gained 12%. Buying behavior strengthened and the upward trend spread across the market. Macro conditions, capital flows, and investor psychology worked together to support the market’s renewed recovery.

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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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Nick Forster, founder of Derive, highlighted that at the end of September, 34.5% of Ether calls were sold — where traders expect ETH to either stay flat or decline — compared to just 15.5% of calls bought. This imbalance indicates that traders believe Ethereum’s price gains may be capped in the near term, even as ETH has recently risen 7% to $2,615.

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In contrast, Bitcoin (BTC) is seeing more bullish sentiment, with significant open interest in options around $75,000 and $100,000, hinting at possible big movements ahead.

As we approach the U.S. presidential election in November, the performance divergence between Bitcoin and Ethereum will be closely watched. However, despite this short-term uncertainty, long-term confidence in Ethereum remains strong, with nearly 29% of all Ether staked, showing continued commitment from investors.

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