Major Altcoin Rally Defies ETF Outflows as Bitcoin Holds Steady Amid Market Volatility

The cryptocurrency market displayed noteworthy resilience on the 18th, closing the trading session with substantial gains in major altcoins despite headwinds from ETF outflows. While Bitcoin (BTC) managed only a modest rebound, Ethereum (ETH), Solana (SOL), and other altcoins led a bullish charge, delivering double-digit weekly gains and demonstrating the strength of the broader market.

Global Market Snapshot: Altcoins Challenge Bitcoin’s Dominance

As of the day’s close, the total market capitalization of digital assets rose 1.41%, reaching $4.11 trillion (approximately KRW 5,697.28 trillion). Bitcoin’s market dominance edged down to 56.9%, signaling a growing prevalence of altcoins in driving market activity. Investor sentiment remained stable, with the Fear & Greed Index holding steady at a neutral reading of 51, reflecting balanced emotions amid ongoing price fluctuations.

ETF Outflows Create Short-Term Pressure, CME Futures Signal Strength

The U.S. spot ETF market faced significant outflows, as Bitcoin ETFs recorded net redemptions of $51.3 million (approximately KRW 71.1 billion). Likewise, Ethereum ETFs saw losses totaling $1.9 million (approximately KRW 2.6 billion). These concentrated outflows were driven by prominent funds, including Fidelity’s FBTC (-$116 million, KRW 160.8 billion) and Grayscale’s GBTC Trust (-$62.6 million, KRW 8.68 billion). Ethereum ETFs managed by Fidelity and Bitwise also faced significant redemptions.

However, not all funds suffered outflows. BlackRock’s iShares Bitcoin Trust (IBIT) bucked the trend, experiencing an inflow of $149.7 million (approximately KRW 207.5 billion). Despite this, the overall ETF market recorded net outflows, signaling uncertainty influenced by the Federal Open Market Committee (FOMC) meeting. Bitcoin ETFs, traditionally seen as low-risk investments, may be indicating short-term corrections in the broader crypto market.

Amid these challenges, CME futures markets displayed resilience and institutional demand. September Bitcoin futures rose 1.47% to $117,530, while Ethereum futures climbed 1.90%, closing at $4,614.50. The consistent premium of futures prices over spot valuations highlights sustained interest from institutional investors, even as spot markets face volatility.

Bitcoin Holds Firm as Ethereum and Solana Drive Altcoin Gains

According to CoinMarketCap data, Bitcoin maintained its stability, trading at $117,213, up 0.33% day-on-day. Ethereum marked its third consecutive session of gains, rising 1.48% to $4,597 and boasting a weekly increase of 3.77%.

Solana (SOL) impressed investors with a 4.5% gain, regaining the $246 level and delivering a notable 10.23% weekly increase. Other altcoins, including Dogecoin (DOGE, +5.26%), Cardano (ADA, +4.67%), and Avalanche (AVAX, +4.01%), showed positive momentum, underscoring the broad optimism across the market.

Meme Coins and Layer 1 Tokens Experience Broad Recovery

Sector-specific performance highlighted robust activity among meme coins and Layer 1 blockchain projects. Dogecoin rallied 5.26%, recovering to $0.28, while HYPE led the segment with an impressive 6.47% increase. Other strong performers included Binance Coin (BNB, +4.39%), Sui (SUI, +3.86%), and Stellar Lumens (XLM, +3.84%), emphasizing the diversity of the current market rally.

Macroeconomic Trends Support Risk Assets

Global macroeconomic indicators also helped shape investor sentiment. The 10-year U.S. Treasury yield dropped by 0.78% to 4.055%, and the dollar index (DXY) declined to 96.579. These moves signal improved risk asset preference, as investors shift away from traditionally safer assets in favor of growth-oriented investments, including cryptocurrencies.

Investor Sentiment Remains Stable Amid Volatile Conditions

The cryptocurrency market showed balanced personality traits, with the Alternative Fear & Greed Index holding stable at 51, firmly within the "neutral" range. This steadiness in sentiment suggests that investors have adjusted to ongoing volatility and remain cautiously optimistic about the market’s medium-term outlook.

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