Altcoin Season Has Begun According to CryptoQuant, But There is a Catch
The long-awaited altcoin season is finally here, at least according to prominent crypto analytics firm CryptoQuant.Altcoin season is when alternative cryptocurrencies (altcoins) experience substantial price increases and outperform Bitcoin. This is largely due to investors taking out their profits from Bitcoin and investing in these altcoins for more gains.Since the crypto market kicked off its resurgence from the 2022 bear market, market participants have continued to anticipate this phase of the market to no avail. It is highly anticipated because altcoins tend to offer higher returns than Bitcoin in a bull market due to their smaller market caps that allow room for greater volatility.Meanwhile, in an X post on Friday, February 21, CryptoQuant CEO Ki Young Ju asserted that this long-awaited phase of the market was finally here. However, he noted that the dynamics had changed.Typically, altcoin season is marked by a decrease in Bitcoin's market share dominance, implying a rotation of profits from Bitcoin to altcoins as speculators seek higher returns.According to Young Ju, however, this is no longer the case. Instead of a rotation of capital from Bitcoin to altcoins, the market phase is now driven by direct stablecoin inflows. Sharing the trading volume ratio of Bitcoin to altcoins on centralized exchanges, he noted that altcoin volumes were now almost thrice that of Bitcoin, suggesting stablecoin holders were now favoring altcoins.
Text source: The Crypto Basic
