“The traditional signal of the start of the altcoin season in the form of capital flows from Bitcoin to other cryptocurrencies is irrelevant. This is the conclusion reached by the founder and CEO of CryptoQuant, Ki Yoon-ju. Alt season is no longer defined by asset rotation from #Bitcoin. The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather […]”, — write: businessua.com.ua
The traditional signal of the start of the altcoin season in the form of capital flows from Bitcoin to other cryptocurrencies is irrelevant. This was the conclusion reached by the founder and CEO CryptoQuant Ki Yoon Joo.
Alt season is no longer defined by asset rotation from #Bitcoin.
The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.
Stablecoin liquidity better explains the altcoin markets. pic.twitter.com/riejM7oXyk
— Ki Young Ju (@ki_young_ju) December 2, 2024
According to him, the determining factor for the segment is the volume of trade not in pairs with digital gold, but against fiat and stablecoins. It is the liquidity of the latter that better reflects market growth.
In an earlier thread, the analyst explained that Bitcoin’s current bullish rally is largely driven by demand from institutional investors and issuers of spot ETFs.
These categories of market participants do not intend to exchange the first cryptocurrency for other assets and, moreover, mostly operate outside crypto exchanges. This makes capital rotation from Bitcoin even more unlikely, as altcoins traditionally rely on trading platforms and need an influx of new retail investors, the head of CryptoQuant noted.
“Don’t get me wrong, I’m bullish on altcoins. I just want to point out that only the chosen ones will attract fresh capital. Altezon will come, but for a few. Not every coin will reach its previous high,” Ki Yoon Joo stated.
A senior analyst at Glassnode, nicknamed CryptoVizArt, disagreed, citing on-chain activity data.
I believe altseason has already begun and probably lost to its peak! https://t.co/9TwNF9m4vJ
— CryptoVizArt.₿ | ZiCast 🎙 (@CryptoVizArt) November 27, 2024
“I believe that the season of altcoins has already begun, but it will probably lose its peak,” the expert said.
CryptoQuant’s founder found the claim to be true “for several major coins.” He noted that the total value of the segment is still far from its maximum.
At the time of writing, Blockchain Center’s Altcoin Season Index metric stands at 73. This means that 73% of the top 50 cryptocurrencies by capitalization have outperformed Bitcoin over the past 90 days. The “alts phase” will come when the index reaches the value of 75.
Source: Blockchain Center.
In October, analysts at Hashkey Capital suggested that the rally in altcoins would begin after Bitcoin broke above $80,000. The flagship had broken this level on November 10. That same month, digital gold broke an all-time high near $100,000.
We will remind, according to cryptoanalyst and founder of ITC Crypto Benjamin Cowen, before the growth season, a deep correction is expected for altcoins.
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