CryptoQuant CEO Ki Young Ju says that the altcoin season is no longer determined by a rotation of capital from Bitcoin, but by an increase in trading volume of altcoins for stablecoin pairs.
The cryptocurrency market could be on the verge of the long-awaited altcoin season (altseason), much to the delight of speculative traders, but the determining factors may have changed, according to a prominent market analyst.
The 'liquidity of stablecoins' will determine the next altseason.
The cryptocurrency market is transforming, with cycle indicators, market structures, and trading patterns changing rapidly.
"The altseason is no longer defined by the rotation of Bitcoin assets," said CryptoQuant CEO Ki Young Ju in a post on December 2 on X.
According to Young JU, the traditional signal that marks the beginning of an altcoin season where capital rotates from Bitcoin BTC 103706 to altcoins has become outdated. Instead, the trading volume of altcoins has become more predominant against stablecoin pairs and fiat currencies, not against BTC.
For example, the combined trading volume of altcoins for Bitcoin pairs has remained significantly low in recent weeks despite the price surge of Ether ETH 3917 during the same period. Additionally, several altcoins, such as XRP 2.365 and Solana SOL 215.34, are close to their all-time highs, while the price of Bitcoin has consolidated below USD 110,000.
This reflects "real market growth rather than a rotation of assets," Ki explained.
This change suggests a deeper and more sustainable evolution of the cryptocurrency market, driven by greater liquidity and stability of stablecoins.
"The liquidity of stablecoins better explains altcoin markets."
Ki adds that the nature of the capital flowing into Bitcoin has changed compared to previous market cycles. Unlike the capital flows driven by retail investors in past bullish cycles, the current bull market is primarily driven by institutional capital flows into spot Bitcoin exchange-traded funds (ETFs).
