Ki Younger Ju, the CEO at CrypotQuant, has shared his argument relating to the altcoin season. In line with a submit on his official X web page, he argued that the principle driver of the altseason is stablecoin liquidity and never Bitcoin (BTC) asset rotation. In contrast to in conventional alt seasons, the place Bitcoin buying and selling pairs influenced altcoin buying and selling quantity, it’s now fueled by stablecoin and fiat forex pairs.
Alt season is not outlined by asset rotation from #Bitcoin.
The surge in altcoin buying and selling quantity isn’t pushed by $BTC pairs however by stablecoin and fiat pairs, reflecting actual market progress somewhat than asset rotation.
Stablecoin liquidity higher explains the altcoin markets. pic.twitter.com/riejM7oXyk
— Ki Younger Ju (@ki_young_ju) December 2, 2024
Altseason, or somewhat altcoin season, is a market situation through which the costs of other cash carry out higher than Bitcoin by way of value appreciation. Vital value rallies and excessive volatility characterize this crypto market situation, which leads to pleasure and market unpredictability for crypto merchants.
Throughout all seasons, crypto buyers enterprise into altcoins; cash flows out of Bitcoin, growing altcoin costs. As buyers search increased returns from altcoins, the Concern of Lacking (FOMO) kicks in, and extra buyers pump cash exterior Bitcoin. Altcoin seasons can final wherever from weeks to months.
Is It Altcoin Season But?
Blockchain Centre says the altcoin season index is 73; therefore, it isn’t but an altseason. Solely 73% of the highest 50 cryptocurrencies have outperformed Bitcoin within the final 90 days.
The chart above implies that the crypto market is nearing altcoin season when 75% of altcoins outperform Bitcoin inside 90 days (3 months).
One other chart by Blockchain Centre signifies the highest 50 performers within the final 90 days. The information excludes stablecoins like USDT and asset-backed tokens like WBTC.
Conclusion
As altcoins purpose to interrupt above their all-time highs, it’s important for crypto merchants and buyers who’re eyeing the altcoin season to keep watch over the Bitcoin dominance index and stablecoin liquidity. These two metrics are essential in monitoring the beginning of an altseason, they usually can current varied alternatives for profit-making.
