Doge and Shiba Inu Rally Eases as Bitcoin Bullishness Remains Elevated

Ether, Solana’s SOL, and other major tokens remained relatively stable in the past 24 hours, with XRP leading the gains by rising 10%. However, Dogecoin (DOGE) and Shiba Inu (SHIB) saw a decline after a 25% rally last week, falling as much as 6%. This comes as bitcoin (BTC) maintained its position above the $71,500 mark on Tuesday.

Data indicates that other major tokens such as ether (ETH), Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA showed little change in the past day. XRP stood out among the crypto majors with a 10% increase, driven by a technical development announcement aimed at enhancing applications and services for users.

The CD20 index, which tracks the twenty largest tokens excluding stablecoins, rose by 0.73%. Additionally, spot bitcoin ETFs surpassed $10 billion in inflows for the first time since their launch in January, according to BitMEX Research. Some market analysts warn that continued inflows could potentially lead to a “sell-side” crisis in the medium term.

CryptoQuant founder Ki Young Ju expressed concerns about the ongoing inflows into spot bitcoin ETFs, stating that bears may struggle to gain control until these inflows cease. He highlighted that known entities like exchanges and miners hold around 3 million BTC, with 1.5 million BTC held by U.S. entities. Ki suggested that a sell-side liquidity crisis could emerge within six months if the current trend persists.

Meanwhile, Singapore-based trading firm QCP Capital noted a bullish signal in the bitcoin options market but urged caution. The firm highlighted that volatility in BTC remains high, particularly for call options, and funding rates have reached elevated levels. Despite this, QCP Capital expects any dips in the market to be quickly bought up.

Volatility in the options market is a key indicator of market activity, while funding rates reflect the bias of leveraged traders towards long or short positions. These factors can influence the overall sentiment in the market and impact trading decisions.

Overall, the cryptocurrency market continues to show resilience and bullishness, with investors closely monitoring developments in major tokens and bitcoin ETF inflows. Traders are advised to exercise caution and stay informed about market dynamics to make informed decisions in this rapidly evolving landscape.