Ki Young Ju, the CEO of on-chain data analytics company CryptoQuant, believes that the altcoin season has begun. However, based on the current trading conditions in the market, the characteristics of this altcoin season are different from those in the past, with only a few coins being favored.
According to the trends observed in previous bull markets, Bitcoin typically rises first before an influx of capital leads various altcoin sectors to take turns increasing in value. However, this time around, such a phenomenon does not seem to be occurring. On Friday, Ju stated on social media platform X:
The ratio of Bitcoin to altcoin trading volume on centralized exchanges (purple line), with the gray line representing the total market capitalization of altcoins. Source: Ki Young Ju
Ju reiterated his argument from the end of last year to explain why the aforementioned capital rotation has not occurred. He noted that despite positive market sentiment, there is not much new liquidity, which is why only a select few altcoins are able to stand out. Ju also believes that Bitcoin is gradually distancing itself from the entire cryptocurrency ecosystem, as it has established a “second-layer ecosystem” based on traditional financial markets due to the involvement of ETFs, funds, and corporations. This results in capital not naturally flowing into altcoins.
Ju summarized the current operating conditions of the altcoin market, emphasizing that market funds are limited and competition is fierce. He wrote:
