What are the future movements of major tokens like ETH, SOL, and XRP? - Following Bitcoin's all-time high | CoinDesk JAPAN

• The fact that Bitcoin has surpassed $118,000 suggests potential changes in the cryptocurrency market, and traders are paying attention to the momentum of altcoins.
• Judging from past trends, a new high for Bitcoin could lead to increased liquidity and interest in large altcoins such as Ethereum and Solana.
• Analysts point out that Ethereum is benefiting from capital inflows from ETFs and interest from institutional investors, while Solana and XRP are expected to rise as Bitcoin's volatility stabilizes.

With Bitcoin (BTC) surpassing $118,000, the cryptocurrency market has switched to a risk-on mode, and traders are watching closely to see whether altcoins will follow suit with similar momentum or be left behind in a BTC-led upward trend.

Historically, Bitcoin's all-time high updates function as a liquidity signal, bringing back away funds into the market, and ultimately flowing into large altcoins.

Signs of such decentralization are already visible in the market, with Ethereum (ETH) testing its year-to-date high, Solana (SOL) recovering the important level of over $160, and mid-cap tokens such as Shiba Inu (SHIB), Hyper Liquid (HYPE), and Avalanche (AVAX) recording double-digit gains over the past 24 hours.

"The fact that Bitcoin has surpassed its all-time high is a liquidity signal and could encourage capital inflows into other major cryptocurrencies," said Rick Maeda, an analyst at Presto Research, in a memo to CoinDesk.

"Historically, when BTC reaches a new all-time high, there tends to be a spillover of liquidity across the entire market. Already, signs of capital inflow into major altcoins such as ETH, SOL, and XRP are being observed due to the recovery of momentum among retail investors and the rebalancing of institutional investors. Overall, BTC's breakout signifies a regime shift, and it is expected that the diversification of funds into altcoins will expand in the future," said Mr. Maeda.

SOL continues to attract attention as a high-beta major Token that is accessible to individual investors and has narrative-focused fundamentals. Mr. Maeda pointed out that user activity in the launch of Solana-native protocols and tokens (such as the recent meme coin boom) is maintaining the flow of liquidity.

XRP is often driven more by sentiment and speculative catalysts than by fundamentals, but new inflows of capital are being seen as traders reassess legal clarity and past correlations. As BTC volatility calms down, XRP and Cardano (ADA) tend to benefit from the ripple effect of risk rotation.

Ethereum continues to benefit from a surge in capital inflows into ETFs and rising expectations for rebalancing by institutional investors. With increasing demand for ETH spot ETPs (exchange-traded products) and active Layer 2 transactions, it is clear that Ethereum is the biggest beneficiary in this upward phase.

Jeff Mei, COO of the cryptocurrency exchange BTSE, told CoinDesk that "ETH is likely to recover to $3200 soon" and that "SOL will easily recover to the $200 level."

"However, this time, the entire market seems to be on the rise. Major tokens such as SOL, ETH, and XRP are showing a return to the high levels recorded at the beginning of January," Mr. Mei pointed out.

Nick Luck, the director of LVRG Research, expressed a similar view. "As Bitcoin reaches new all-time highs, altcoins are trying to ride the bullish wave. The inflows into Ethereum ETFs have hit record highs, and the American regulatory authorities have abolished tax rules for cryptocurrency brokers, paving the way for further expansion of decentralized finance (DeFi)."

Mr. Luck stated, "Other major coins such as SOL and XRP are likely to rise further if Bitcoin's volatility stabilizes and finds a new support price range."