Market Breadth Widens as Inflows Continue, Eyeing Tomorrow's ETF Approval Window

Nov 8, 2023 • 8 Min Read

Market Breadth Expanding

The crypto market is exhibiting signs of increased breadth, particularly noticeable as altcoins, typically further out on the risk curve, begin to attract more interest. As illustrated in the data below, the total market cap for altcoins (including stablecoins) is advancing towards its previous year-to-date high.

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ETH has not yet seen a substantial rally, but it appears to have established a potential near-term bottom against BTC. This stabilization is crucial for encouraging capital flow into assets within the Ethereum ecosystem.

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Liquidity dispersion across the crypto market into assets beyond BTC and ETH often signals a time to be vigilant of potential downside risks. This dispersion typically leads to thinner liquidity for larger-cap assets, unless accompanied by continued capital inflows.

The following charts suggest that the market's breadth is widening. However, this expansion is occurring more rapidly against USD than BTC. Further, when combined with the ongoing data showing continued positive flows, the current rally still seems fundamentally healthy and worth buying into.

ByteTree, a crypto data provider, offers a breadth score ranging from 0 to 5 — with 5 indicating the strongest momentum — across various metrics for t...

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