The cryptocurrency market may be entering a highly anticipated “altcoin season” (altseason), but the dynamics behind it are evolving. According to CryptoQuant CEO Ki Young Ju, altseason is no longer triggered by capital rotating out of Bitcoin but by a sharp increase in altcoin trading volumes against stablecoins.
Stablecoin Liquidity Takes the Lead
The crypto market has seen significant changes in trading patterns and market structures. On Dec. 2, Ki Young Ju noted on social media that the traditional model of altcoin season—where funds move from Bitcoin to altcoins—is now outdated.
Instead, the surge in altcoin trading activity is being driven by trading pairs with stablecoins and fiat currencies rather than Bitcoin. This shift suggests that market participants are increasingly focusing on the liquidity and stability offered by these pairs to trade altcoins.
Changing Signals in the Crypto Market
For years, altcoin season was characterized by Bitcoin’s dominance dropping as traders reallocated funds to smaller cryptocurrencies. However, Ki suggests this pattern is no longer the primary indicator. The rise of stablecoins and their growing importance in crypto trading are reshaping how altseason is defined.
Summary Review: The long-awaited “altcoin season” might be around the corner, but its driving forces have shifted. Analysts suggest that instead of Bitcoin-to-altcoin capital rotation, altseason is now fueled by increased trading volumes against stablecoins and fiat currencies. This reflects a changing market structure and the growing role of stablecoins in crypto trading.
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