The cryptocurrency market experienced a strong upswing as alternative digital currencies

The cryptocurrency market experienced a strong upswing as alternative digital currencies, commonly known as altcoins, outperformed Bitcoin

The cryptocurrency market experienced a strong upswing on Monday, March 24, as alternative digital currencies, commonly known as altcoins, outperformed Bitcoin in a broad-based rally.

Among the top-performing altcoins, Solana (SOL) surged as much as 11%, Dogecoin (DOGE) climbed approximately 8%, and Avalanche (AVAX) registered an 8% increase.

Meanwhile, Bitcoin (BTC) rose by 4.3%, reaching a two-week high of $88,786.

The shift in U.S. tariff policies appeared to be a major factor driving the recent movements in the crypto market.

Signs of more targeted tariffs emerged, leading to reduced demand for traditional safe-haven assets, such as gold and U.S. Treasury bonds. Consequently, investors shifted their attention to riskier assets, including cryptocurrencies, in search of higher returns.

Bitcoin, often dubbed “digital gold,” usually benefits from economic uncertainty and inflationary pressures. However, with the market perceiving less immediate risk from trade tensions, the rotation toward altcoins became more pronounced.

These tokens, boasting smaller market capitalizations and potentially greater growth potential, tended to attract speculative investors who might prefer higher yields during bullish phases.

During bullish market stretches, altcoins have historically shown the ability to outperform Bitcoin, especially in risk-on environments.

However, this trend comes with significant volatility, as these tokens also tend to suffer steeper declines during market downturns.

Solana, recognized for its fast and low-cost transactions, has been increasingly preferred by memecoin issuers, further solidifying its position as a go-to blockchain for new token launches.

Dogecoin, the original meme cryptocurrency, continues to exhibit strong market performance, largely fueled by retail enthusiasm and potential integrations into mainstream financial ecosystems.

Avalanche, another high-performance blockchain network, has seen increased adoption due to its speed and scalability.

A crucial indicator of market sentiment is the recent change in institutional capital flows into Bitcoin exchange-traded funds (ETFs).

For five consecutive weeks, Bitcoin ETFs saw net outflows, indicating that more institutional investors were selling their Bitcoin holdings than buying.

Nevertheless, this trend reversed on Monday, March 24, as inflows returned, according to QCP Capital, a crypto asset trading firm. This marks a potential turning point that could restore confidence in Bitcoin’s medium-to-long-term trajectory.

ETFs provide a regulated and SEC-approved avenue for institutional investors to gain exposure to Bitcoin without needing to directly hold the cryptocurrency, which is typically required for participation in the decentralized crypto ecosystem.

The return of institutional capital signals renewed interest in Bitcoin as an investable asset, particularly among longer-term holders who may view the recent price dip as a buying opportunity.

Crypto trading expert Kirill Kretov from CoinPanel expressed caution against overinterpreting the recent rally.

“While markets are flashing green today—especially led by altcoins—there’s little beneath the surface to support a real shift in momentum,” Kretov stated. “From a broader view, this looks more like a short-term relief bounce than the start of something meaningful.”

Despite the recent price surge, Bitcoin remains approximately 20% below its all-time high, which was reached on the day former U.S. President Donald Trump was inaugurated for a second term in a surprising turn of events.

This decline has led some traders to question whether the market’s upward momentum can be sustained for an extended period.