Headline24jam.com – Institutional interest in major altcoins like Solana, Cardano, Litecoin, and Sui has significantly decreased due to the delayed approval of U.S. exchange-traded funds (ETFs) and the ongoing government shutdown. This shift has redirected capital towards Bitcoin, as outlined in CoinShares’ latest fund flow report.
Institutional Flows Redirected to Bitcoin
According to CoinShares, there has been a notable decline in inflows for altcoins. For instance, Solana attracted only $29.4 million in inflows, while XRP saw $84.3 million, both from much higher peaks earlier in October. Solana had previously recorded a weekly high of $706.5 million in inflows and XRP at $219.4 million, highlighting a cooling trend in the market.
Altcoin Market Faces Challenges
Cardano reported $0.3 million in outflows, reversing an inflow of $3.7 million the previous week. Similarly, Sui faced $8.5 million in outflows compared to earlier inflows of $5.9 million. Chainlink and Litecoin also experienced dwindling investor interest, with analysts attributing the lack of clarity on ETF approval timelines to the reduced short-term participation from institutional investors. Consequently, several funds are pausing accumulation strategies until regulatory conditions improve.
Diverging Paths for Bitcoin and Ethereum
Despite the setbacks in altcoin investments, the overall cryptocurrency market saw inflows of $921 million as investors reacted positively to softer U.S. consumer price index data and anticipated a potential 25-basis-point rate cut by the Federal Reserve. Bitcoin alone captured $931 million in inflows, increasing total investments to $9.4 billion since the last rate adjustment.
However, Ethereum struggled, facing $169 million in outflows after five consecutive weeks of positive inflows. Spot Ethereum ETFs saw net outflows for three consecutive days, even as ETH prices briefly exceeded $4,200 before traders locked in profits.
Long-Term Outlook for Solana
Despite recent outflows, Solana remains a noteworthy performer, currently trading near $199 with a 3.5% weekly gain. Analyst curb.sol indicated that Solana has confirmed a macro breakout from the $200 threshold, anticipating a target of around $1,000 and then $2,000. This pattern draws parallels to early 2021, suggesting the potential onset of a market expansion cycle.
Analyst Crypto Patel offered an even broader prediction, envisioning that Solana might replicate its previous growth cycle of 27,560%, potentially reaching $9,200 by 2029. He remarked that the current scenario resembles Wyckoff accumulation, which could lead to a significant price increase once market confidence is restored.
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