Altcoin season builds as Ethereum outpaces Bitcoin with ETF inflows: MEXC

Ethereum is leading Bitcoin in ETF flows post-Pectra upgrade, suggesting a coming altcoin season, says Tracy Jin of MEXC.

Bitcoin’s (BTC) grip on the crypto market may soon loosen. On Tuesday, June 3, MEXC COO Tracy Jin shared her analysis with crypto.news, highlighting significant signs of an upcoming altcoin season. Notably, Jin explains that Ethereum’s (ETH) performance following the Pectra upgrade is showing strong momentum.

“Ethereum is decisively leading the charge for transition and capital rotation into altcoins in this current market cycle, and other coins like XMR, ENA, HYPE, AAVE, and ARB are following suit, posting more than 5% gains in contrast to BTC’s muted 0.6% gain during Tuesday’s recovery rally,” Tracy Jin, MEXC.

Jin also emphasized that exchange-traded fund flows have recently tilted decisively in Ethereum’s favor. Specifically, Ethereum ETFs have recorded an 11-day streak of inflows totaling $630 million. In contrast, Bitcoin ETFs saw three consecutive days of outflows, totaling $1.2 billion.

According to Jin, this indicates rising institutional interest in Ethereum, especially in the aftermath of the Pectra upgrade. She notes that more institutions are now considering alternatives to Bitcoin ahead of the next market cycle.

We are not in altcoin season yet, Jin suggests

Still, Jin clarifies that the altcoin season has not officially begun. For one, only 27 out of the top 100 altcoins have outperformed Bitcoin over the past 90 days. Meanwhile, Bitcoin’s dominance remains strong at 63.1%. That said, Ethereum has posted modest gains, with its dominance increasing by 2% in May.

“While recent altcoin performance has been encouraging, history suggests that the true altseason typically begins when Bitcoin’s dominance starts to diminish, and doesn’t take hold until Bitcoin’s dominance starts to decline more meaningfully,” Tracy Jin, MEXC.

For a full-fledged altcoin season to emerge, Jin believes Bitcoin’s dominance must drop more sharply. She suggests this is possible as Bitcoin stabilizes at the psychological level of $100,000. In that case, Ethereum could break through the $2,750 resistance and rally toward $3,200.