The crypto market is undergoing a transformation, where factors determining the altseason have significantly changed. A new dynamic is emerging with stablecoins playing a key role.
Transformation of the Crypto Market
The crypto market is evolving with new cycle indicators, market structures, and trading patterns. According to CryptoQuant CEO Ki Young Ju, the traditional signals of altseason initiation, where capital rotates from Bitcoin to altcoins, are outdated. Altcoins increasingly trade against stablecoins and fiat currencies instead of Bitcoin.
The New Role of Stablecoins
Ki Young Ju notes that the nature of capital flowing into Bitcoin has shifted. The current bull market is predominantly driven by institutional capital through Bitcoin spot ETFs rather than retail investors. This underscores more stable market growth due to increased stablecoin liquidity.
Upcoming Altseason
Altcoins are performing impressively, indicating an imminent altseason. The Altcoin Season Index from Blockchain Center shows that 73% of the top 50 altcoins outperformed Bitcoin over the last 90 days, nearing the critical 75% mark.
The dynamics of altseason are shifting, with effective stablecoin liquidity management becoming a crucial factor. The market is on the verge of a new wave, potentially altering capital distribution.
