Capital continues to shift from major cryptocurrencies to stablecoins, leaving the altcoin market with limited growth.
Current Trends in Crypto Investments
According to analyst Ali Martinez, capital is continuing to flow out of Bitcoin and Ethereum into stablecoins. Data shows a decline in capital inflows into both these cryptocurrencies, while stablecoins have seen significant growth. This indicates that investors are currently favoring safer assets, likely waiting for better entry points.
Absence of Altseason
Historically, capital moving into altcoins signaled the start of an altseason. However, the CoinMarketCap index shows that altcoins currently do not show significant growth compared to Bitcoin. Oscillator indicators remain neutral, with no evidence of an impending altseason.
Experts' Insights
Another analyst, Miles Deutscher, believes that instead, capital has been directed toward fast-moving, low-cap on-chain tokens, trapping speculative funds in illiquid 'meme coins.' This might also be a reason for the lack of significant growth in the altcoin market.
The current crypto market situation indicates that investors prefer stablecoins, slowing the growth of altcoins. Analysts continue to observe and analyze the data in anticipation of change.
