The CEO of on-chain data analysis company CryptoQuant, Ki Young Ju, believes that the altcoin season has begun. However, based on the current trading situation in the market, this altcoin season is characterized by a different trend compared to the past, with only a few cryptocurrencies being favored.
According to the operational trends observed in previous bull markets, Bitcoin typically rises first before the altcoin season arrives, followed by a rotation of various altcoin sectors as funds flow in. However, this bull market does not seem to exhibit that pattern. On Friday, Ki Young Ju stated on the social media platform X:
The ratio of Bitcoin to altcoin trading volume on centralized exchanges (purple line), with the gray line representing total market capitalization of altcoins. Source: Ki Young Ju
Ju reiterated his argument from the end of last year to explain the absence of the aforementioned fund rotation phenomenon, noting that while market sentiment is positive, there is not much new liquidity, resulting in only a select few altcoins standing 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 through the involvement of ETFs, funds, and enterprises. This has caused funds not to flow naturally into altcoins.
Ju summarized the current operational status of the altcoin market, emphasizing the limited market funds and intense competition, stating: