According to the Cryptoquant CEO KI Young Ju, the long -awaited Alt Season (Alt Season) arrived.
But the analyst says that the Bitcoin-Altcoin capital rotation is played by other rules, unlike the previous cycle.
The analyst calls the Altcoin season, but not as expected.
According to the latest observation of the JU, Stablecoin holders, not Bitcoin traders, provide fuel selective Altcoin profits while market liquidity is limited.
In a recent post on X (previous Twitter), JU declared that Alt Season began, citing Alt Season quotes the rapid increase in Altcoin trading volume. According to the analyst, the Altcoin trading volume is 2.7 times that of Bitcoin. But JU also mentioned that this is not a broad rally.
“It’s a very optional ALT season. Only coins are pumping. Without fresh liquidity, it feels like a PvP fight with a fixed pie. ”
This argument is consistent with his initial warning. In January, KI warned that the Altcoin market remained a zero -sum game, and that capital was circulating among assets without seeing new inflows. He predicted that the ALT season would only prefer “strange and challenging” assets in December.
“Altcoins was used to move together according to its correlation with BTC, but now the pattern is broken. “We started to show an independent trend while attracting new liquidity,” KI wrote.
Some merchants are excited, but other merchants are still convincing. ROBW, a user of X, questioned JU’s ALT Season definition.
“How many tokens are pumping, so should it be season? The general metrics don’t apply, but if you really carefully choose Alt Season, ALT Season doesn’t sound like ALT season. ”ROBW challenged.
Similarly, Deimosweb3 suggested that the market has not yet entered the full -fledged ALT season while some Altcoins are well performed.
China’s fiscal movement and encryption market
The parallel discussion of the encryption community is related to China’s recent financial maneuver. Some speculate that China’s economic policy can help encrypt by injecting liquidity into the global market.
However, analysts pointed out that China did not inject new capital, but pointed out that the M1 currency supply, including demand deposits and prepaid funds.
“They did not inject new capital. They were “calculated again” to include other deposits and funds. There is no fresh print. ”The user of X has a joint.
Local media confirms this and indicates that the national central bank will include these factors in 2025 in the PEOPLE ‘S Bank of Bank.
Crypto and Defi Research Institute NFT Bear stressed that the M1 supply reported by this change increased 67.59%. But he stressed that it is not the same as the fresh liquidity in the financial market.
There was also a historical comparison of the United States in 2020. At the time, the United States quickly increased the M1 currency supply, promoting a 16 -fold surge in Altcoin’s market cap.
China’s current behavior is different, but some traders speculate that even some of the new liquidity flowing into encryption can cause another bull run.
“It still remains whether this is converted to another explosive encryption rally. But if the major global economy injects liquidity (there is no measurement method), the financial market tends to be attracting attention, and encryption is often at the center of dialogue, ”NFT Bear said.
Despite the uncertainty, some Altcoin had excellent performance. Projects such as SEI (SEI), SUI (SUI), ZKSYNC (ZK) and Story (IP) have attracted attention, and in that space, they can inform the story of emerging.
Whether this profit is sustainable, it still remains to be temporarily increasing in a simple fragmentary market. Nevertheless, analysts agree that traditional Altcoin season metrics are no longer applied.
Bitcoin is changing the encryption market as it serves as a paper-based asset through the EXCHANGE-Traded Funds (ETF) and institutional funds. Altcoins appears to be an independent story and useful to attract capital instead of a wide range of BTC-ALT capital rotation.
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