XRP and Solana led all altcoin-based exchange-traded product (ETP) inflows during the week ending March 21, with $6.71 million and $6.44 million respectively, according to digital asset investment firm CoinShares.

Other altcoin inflows were comparatively modest, with Polygon (MATIC) logging $400,000 and Chainlink (LINK) adding $200,000.

Sentiment toward altcoins remained mixed overall, as Ether (ETH) alone saw significant outflows totaling $86 million. Other notable outflows included Sui (SUI), with $1.3 million, Polkadot (DOT), with $1.3 million and Tron (TRX) with $950,000.

Despite Ether’s substantial outflows dragging down the altcoin sector, digital assets collectively reversed a five-week streak of net outflows, registering inflows of $644 million. Bitcoin (BTC) led this recovery with inflows amounting to $724 million, snapping its own five-week negative streak.

Ethereum outflows pull down altcoins ETP performance, but Bitcoin carries digital assets. Source: CoinShares

As Cointelegraph reported, Ethereum has now experienced net weekly outflows for four consecutive weeks, while Bitcoin recorded its largest net inflow since January.

Related: Bitcoin ETFs log first net inflows in weeks, while Ether outflows continue

Sentiment on digital assets ETPs shifting across the world

CoinShares noted that the majority of inflows originated from the US, which accounted for $632 million, driven primarily by BlackRock’s iShares Bitcoin Trust (IBIT). 

Positive sentiment, however, extended beyond the US, with Switzerland leading other regions at $15.9 million, followed closely by Germany ($13.9 million) and Hong Kong ($1.2 million).

Canada and Sweden lead outflows. Source: CoinShares

Stars lining up for Solana and XRP

Although altcoins collectively suffered a net outflow driven primarily by Ethereum’s performance, Solana and XRP emerged as the standout altcoin performers.

In Solana’s case, the US market is poised to introduce its first Solana futures exchange-traded funds (ETF), potentially paving the way for a future spot Solana ETF.

Related: XRP and Solana race toward the next crypto ETF approval

In Bitcoin’s case, the approval of futures-based ETFs was initially favored by regulators due to the existence of a regulated market (the Chicago Mercantile Exchange), which provided assurances against potential market manipulation. However, this raised controversy over the SEC’s continued rejection of spot Bitcoin ETFs, which directly hold the cryptocurrency. 

A pivotal lawsuit by Grayscale successfully challenged this inconsistency, compelling the SEC to revisit its stance and ultimately paving the way for approval of the long-awaited spot Bitcoin ETFs.

Meanwhile, XRP has seen a significant boost from the recent dismissal by the SEC of its long-running lawsuit against Ripple Labs.

Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge 

The acting chair of the US Securities and Exchange Commission has reportedly voted against the agency suing Elon Musk over the billionaire’s alleged securities violations concerning the disclosure of Twitter stocks. 

Citing anonymous sources, Reuters reported on March 24 that the SEC’s five commissioners conducted a vote on whether to sue Musk or not before the agency filed its lawsuit against the billionaire. 

Four commissioners voted in favor, while the lone dissent came from Mark Uyeda, who was appointed acting chair by US President Donald Trump on Jan. 20. SEC Commissioner Hester Peirce voted along with three other commissioners to sue Musk. 

Uyeda and Peirce are known for their dissenting opinions on the SEC’s enforcement actions against the crypto industry during former SEC Chair Gary Gensler’s time in office.

SEC lawsuit against Elon Musk

In 2022, Elon Musk bought Twitter for $44 billion and rebranded the social media platform to X. After the acquisition, the SEC began investigating whether Musk violated any securities laws as he acquired the platform. 

The SEC filed a lawsuit on Jan. 14 alleging that Musk failed to disclose his purchase of Twitter shares within the required 10-day window after surpassing the 5% ownership threshold. The agency said Musk delayed the disclosure by 11 days, allowing him to continue acquiring shares at lower prices, ultimately saving an estimated $150 million.

Related: Musk says he found ‘magic money computers’ printing money ‘out of thin air’

Elon Musk claps back at “broken” organization

Musk’s lawyer, Alex Spiro, previously told Cointelegraph that the SEC’s action is an “admission” that it cannot bring an actual case. Meanwhile, Musk described the SEC as a “totally broken organization” on X, saying “so many actual crimes” go unpunished. 

Around a month after the lawsuit was filed, the Department of Government Efficiency (DOGE), a US government agency led by Musk, set its sights on the SEC. On Feb. 17, a page affiliated with DOGE called on the public to disclose any “waste, fraud and abuse” related to the SEC. Musk also shared the post to his over 200 million followers on X. 

A court filing indicates Musk has until April 4 to respond to the lawsuit. Meanwhile, President Trump has issued an executive order calling for a review of what he calls politically motivated investigations at the SEC and other federal agencies under the previous administration.

Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge

Bitcoin may reach a new all-time high of $110,000 before any significant retracement, according to some market analysts who cite easing inflation and increasing global liquidity as key factors supporting a price rally.

Bitcoin (BTC) has been rising for two consecutive weeks, achieving a bullish weekly close just above $86,000 on March 23, TradingView data shows.

Combined with fading inflation-related concerns, this may set the stage for Bitcoin’s rally to a $110,000 all-time high, according to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom.

BTC/USD, 1-week chart. Source: Cointelegraph/TradingView

Hayes wrote in a March 24 X post:

“I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause of “transitory inflation.” JAYPOW told me so.”

Source: Arthur Hayes

“What I mean is that the price is more likely to hit $110k than $76.5k next. If we hit $110k, then it’s yachtzee time and we ain’t looking back until $250k,” Hayes added in a follow-up X post.

Quantitative tightening (QT) is when the US Federal Reserve shrinks its balance sheet by selling bonds or letting them mature without reinvesting proceeds, while quantitative easing (QE) means that the Fed is buying bonds and pumping money into the economy to lower interest rates and encourage spending during difficult financial conditions.

Other analysts pointed out that while the Fed has slowed QT, it has not yet fully pivoted to easing.

“QT is not ‘basically over’ on April 1st. They still have $35B/mo coming off from mortgage backed securities. They just slowed QT from $60B/mo to $40B/mo,” according to Benjamin Cowen, founder and CEO of IntoTheCryptoVerse.

Related: Bitcoin may recover to $90K amid easing inflation concerns after FOMC meeting

Meanwhile, market participants await the Fed’s expected pivot to quantitative easing, which has historically been positive for Bitcoin’s price.

BTC/USD, 1-week chart, 2020–2021. Source: Cointelegraph/TradingView

The last period of QE in 2020 led to a more than 1,000% surge in Bitcoin’s price, from around $6,000 in March 2020 to a then-record high of $69,000 in November 2021. Analysts say a similar setup may be forming again.

Related: Bitcoin reserve backlash signals unrealistic industry expectations

Macro conditions may support Bitcoin’s rally to $110,000

Bitcoin’s recovery to above $85,000 after last week’s Federal Open Market Committee (FOMC) meeting was a bullish sign for investor sentiment that may signal more upside, according to Emmanuel Cardozo, market analyst at real-world asset (RWA) tokenization platform Brikken.

The macroeconomic environment also “supports” a Bitcoin rally to $110,000, the analyst told Cointelegraph.

“Global liquidity has risen, discussions around a US Bitcoin strategic reserve, potentially driving Bitcoin toward that $110,000 mark as BTC liquidity available in exchanges keeps dropping, leading to a supply squeeze scenario,” he said.

“However, a correction to $76,500 aligns with Bitcoin’s historical volatility, often triggered by profit-taking or unexpected market shifts,” he added.

Other analysts also see a high likelihood of Hayes’ prediction playing out.

“Given Bitcoin’s recent close above the 21-day and 200-day moving averages, this bullish momentum aligns with his view. However, the $88K resistance remains a key hurdle,” Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.

Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.