As the cycle progresses, many investors are awaiting the long-anticipated Altseason, with opinions split on whether it will happen. Several market watchers have affirmed that Altcoins (Alts) are getting ready for an explosive breakout, but others, including CryptoQuant\u2019s CEO, have suggested a different outlook.<\/p>\n
On Friday, Ki Young Ju, CryptoQuant\u2019s founder and CEO, affirmed<\/a> that the Altseason has begun. In an X thread, Ju suggested that there will not be a direct Bitcoin-to-alt rotation this cycle, noting that \u201cstablecoin holders are favoring\u201d Altcoins.<\/p>\n According to Ju, Bitcoin is no longer a quote cryptocurrency, adding that Bitcoin (BTC) Dominance<\/a> doesn\u2019t define the altseason anymore. In a December post, he explained that \u201cAltcoins used to move together based on their correlation with BTC,\u201d however, this pattern has now broken.<\/p>\n Instead, he stated that trading volume is the metric that defines it, with Altcoins currently having 2.7x the volume of Bitcoin. Ju also considers this to be a very selective and challenging altseason, with only a few Altcoins with strong user cases and narratives<\/a> expected to thrive.<\/p>\n He added that, despite good market sentiment, there isn\u2019t fresh liquidity, which \u201cfeels like a PvP fight over a fixed pie.\u201d As a result, Altcoin battles \u201care getting fiercer,\u201d and only a few are pumping this altseason and attracting new liquidity.<\/p>\n Altcoin markets are currently a zero-sum PvP game. While Bitcoin has doubled its market cap, the alt market cap is still below its previous ATH, rotating among themselves without fresh capital inflows. Only a few Alts with strong use cases and narratives will survive.<\/p>\n Trader Crypto Yoddha suggested<\/a> that Altcoins are \u201cready for round 2\u201d after its recent performance. According to the post, the crypto market, excluding BTC and ETH, is following 2020-2021\u2019s playbook.<\/p>\n During the last cycle, Altcoins experienced<\/a> two legs towards its cycle top and all-time high (ATH) of $1.13 trillion. In the \u201cfirst round,\u201d they broke out from its accumulation period, seeing a small re-accumulation phase before surging to the previous top.<\/p>\n After reclaiming this resistance level, Altcoins started \u201cround two,\u201d achieving various new highs before hitting a new cycle top. Yoddha pointed out that the market is finishing the first round, as it tested last cycle\u2019s top during the post-election pump.<\/p>\nAltcoins Ready For Next Leg Up<\/h2>\n