Leading altcoins such as Ethereum and Solana reacted more strongly to US inflation data than the primary cryptocurrency. This was noted by The Block.
According to the BLS, inflation in the US accelerated in June. The Consumer Price Index (CPI) rose to 2.7%.
Valentin Fournier, a leading analyst at BRN, noted:
“The inflation data confirmed that the market is optimistic. Inflows into ETFs continue, and altcoins are catching up with Bitcoin.”
The CPI news saw a modest reaction from the primary cryptocurrency—Bitcoin’s price rose only 2% over the past day, nearing $119,300. Meanwhile, Ethereum’s rate jumped 7.9% to $3,238, and Solana’s by 5.4% to $167, according to CoinGecko.
Fournier emphasized that after the report’s release, investors’ appetite for risk increased. Capital began flowing into altcoins, as evidenced by inflows into Ethereum ETFs and Solana-based investment products: $193 million and a “modest” $3.3 million, respectively.
According to the analyst, the second-largest cryptocurrency by market capitalization benefits not only from demand for exchange-traded funds—corporate players are also fueling interest in Ethereum.
Public company SharpLink Gaming, holding 280,706 ETH, became the largest public holder of the asset, surpassing the Ethereum Foundation. Over the past week, the firm acquired more than 50,000 ETH worth over $73 million.
Previously, Nasdaq-listed miner BitMine Immersion also announced raising $67.3 million to purchase Ethereum.
When is Altcoin Season?
Ethereum is rising despite Bitcoin’s less convincing performance, with capital actively flowing into altcoins. Judging by key indicators, investors are inspired by inflows into ETFs based on the second-largest cryptocurrency and corporate purchases.
The altcoin season index, which considers the dynamics of 75% of the top 50 cryptocurrencies by market capitalization, has reached its highest point since February. This is a clear signal of a trend shift.
In February, CryptoQuant’s founder and CEO Ki Young Ju announced the start of altcoin season and described it as “extremely selective.” Instead of the standard metric—Bitcoin dominance—the expert suggested focusing on trading volume.
In July, analysts at Santiment noted that market data indicated the start of altcoin season. Experts warned of alarming signals.