Data on inflation in the US accelerated the approach of the alt season

Leading altcoins like Ethereum and Solana reacted more strongly to the inflation data in the US than the first cryptocurrency. This was noted by The Block.

Data: CoinGecko. According to BLS, inflation in the US accelerated in June. The consumer price index (CPI) rose to 2.7%

Lead analyst of BRN, Valentin Fournier noted:

"Inflation data confirmed that the market is optimistic. Inflows into ETFs continue, altcoins are catching up with Bitcoin."

The first cryptocurrency reacted modestly to the CPI news — the price of Bitcoin increased by only 2% over the past 24 hours, approaching $119,300. At the same time, the price of Ethereum jumped by 7.9% to $3,238, while Solana rose by 5.4% to $167, according to CoinGecko.

Fournier emphasized that after the report was published, investors' risk appetite increased. Capital began to flow into altcoins, as evidenced by the inflows into Ethereum ETFs and investment products based on Solana: $193 million and a "modest" $3.3 million, respectively.

According to the analyst, the second largest cryptocurrency by market capitalization is benefiting not only from demand for exchange-traded funds — interest in Ethereum is also fueled by corporate players.

The public company SharpLink Gaming, which owns 280,706 ETH, has become the largest public holder of the asset, surpassing the Ethereum Foundation. Over the past week, the firm has acquired more than 50,000 ETH for over $73 million.

Previously listed on Nasdaq, miner BitMine Immersion also announced the raising of $67.3 million for the purchase of Ethereum.

When is the alt season?

Ethereum is rising despite the not-so-convincing dynamics of Bitcoin, with capital actively flowing into altcoins. Judging by key indicators, investors are inspired by the inflows into ETFs based on the second-largest cryptocurrency and corporate purchases.

The alt season index, which takes into account the dynamics of 75% of coins in the top 50 cryptocurrencies by market capitalization, has reached a peak since February. This is a clear signal of a trend change.

In February, CryptoQuant founder and CEO Ki Young Ju announced the beginning of an alt season and described it as "extremely selective." Instead of the standard metric — Bitcoin dominance — the expert suggested focusing on trading volume.

Recall that in July, Santiment analysts noted that market data indicates the start of the alt season. Experts warned of alarming signals.