Bitcoin Dominance Faces Challenges as Capital Flows Shift

In recent ETF data, a concerning trend has emerged, with approximately $3.8 billion flowing out of spot Bitcoin and Ethereum funds over the past five weeks. This marks the longest stretch of outflows in nearly a year, sparking worries about potential price drops for these cryptocurrencies.

The capital that was previously invested in Bitcoin is not entirely leaving the crypto market, but rather rotating towards alternative assets with more promising growth prospects. For instance, Solana ETFs have pulled in around $14 million, while XRP is quietly gaining attention from investors.

This shift away from Bitcoin has led some analysts to speculate that we may be entering an era where Bitcoin's dominance is no longer unconditional. While the market has shifted towards alternative assets offering real utility or momentum, it remains to be seen whether this trend will continue in the long term.