Cryptocurrency markets show altcoin growth amid Bitcoin ETF outflows

Cryptocurrency market analysis reveals diverging trends between Bitcoin and various altcoins. According to Santiment, several altcoin projects experienced significant network growth over the past week, measured by the number of new wallet addresses created. Cap (CAP) led this growth with an 800% increase, followed by Grass (GRASS) at 698.9% and Starknet (STRK) at 468.78%. Other notable performers included Fartcoin (FARTCOIN) and Bonk (BONK) within the Solana ecosystem.

In the Bitcoin market, Glassnode reports that realized losses among long-term investors have decreased by 85% since August. However, a sustained rally faces obstacles due to ETF outflows and selling pressure from investors who purchased at higher price points. While Bitcoin saw net inflows of approximately $3 billion in US spot ETFs between late September and early October, data indicates a shift toward net outflows starting October 7. Analysts suggest that the $88,000 level is a critical threshold where investors approaching their break-even point may sell, necessitating stronger spot demand to sustain upward momentum.