Altseason Has Finally Started, Declares CryptoQuant CEO But Theres A Catch
A popular crypto analyst has made a bold proclamation about altcoins as the broader crypto market attempts a recovery. The chief executive of blockchain intelligence platform CryptoQuant stated that the stage is set for altcoins aka cryptocurrencies that arent Bitcoin to witness a big burst to the upside.
Altcoins Trading Volumes Overtake Bitcoin
CryptoQuant CEO Ki Young Ju told his followers on X that the highly anticipated time for altcoins to outperform Bitcoin is already underway.
Young Ju suggested that alt volume is 2.7x BTC. This indicates that altcoins are currently posting a higher trading volume than Bitcoin, seemingly indicating a stronger demand from traders for alternative cryptocurrencies.
According to the pundit, this alt season differs significantly from prior cycles as there is no direct capital rotation from Bitcoin to altcoins. This means that the change in Bitcoin dominance is not spurred by traders shifting their profits from Bitcoin into altcoins.
Young Ju notes that most traders have switched to stablecoins like Tethers USDT and Circles USDC instead of using Bitcoin as the base trading pair for altcoins. These traders are purchasing altcoins directly and sidestepping BTC, marking a notable shift in market behavior among participants.
That perspective contrasts strongly with the historical pattern where a drop in Bitcoin dominance which tracks the market cap of BTC versus the rest of crypto assets alluded to an imminent altcoin comeback. Now, the industry is seemingly exploring uncharted territory as trading volume is being used to define alt season.
What Lies Ahead
Young Ju, however, warned traders that not all altcoins are poised to advance much higher. While some assets are posting big gains, others continue to remain lackluster.
As such, altcoin investors must do their own research to determine exactly which altcoins will pump hard this altcoin season and which ones to avoid this bull cycle.
Bitcoin is trading for $99,424 at the time of writing, up 1.8% in the last 24 hours, as per data from CoinGecko. The jury is still out on whether an altseason has begun, but a glance at the markets shows stark differences with past cycles.
Read more: https://zycrypto.com/altseason-has-finally-started-declares-cryptoquant-ceo-but-theres-a-catch/
Text source: ZyCrypto
