Exits from CEX to Altcoins 👉🚦🚦 💰👀
📌One of the early indicators of the start of an altcoin season is an increase in outflows from BTC to altcoins on central exchanges (CEXs). Investors sell their BTC and buy altcoins, believing that altcoins will increase in value. This leads to upward pressure on the prices of altcoins.
💣Liquidity Flow:
📌Liquidity shows how easily an asset can be bought and sold. As liquidity increases, altcoins become easier to buy and sell, contributing to further rise in prices.
💣Road to Altcoin Season:
🧨Experienced investors call this influx of liquidity and increased altcoin demand the “Road to Altcoin Season.” This usually represents a phase before the start of the altcoin season.
💣Combined Effect of Multiple Factors:
📌In the last altcoin season like 2021, multiple factors such as the aforementioned liquidity influx and increased demand came together, causing significant increases in prices. However, there is currently no talk of an altcoin season like 2021. This is likely due to more than one factor coming together. Each factor alone may not be strong enough. The pie may have grown and the share may have shrunk. Therefore, I think we will see hype from time to time. After the basic L1 process such as $SOL $AVAX , #AI $ARKM and #Meme processes. There is a high probability that the current one is L2.. 👍