The CEO of on-chain data analysis firm CryptoQuant, Ki Young Ju, believes that the altcoin season has commenced; however, the characteristics of this altcoin season differ from those of the past, with only a few coins being favored by the market.
According to the operating trends of previous bull markets, Bitcoin usually experiences an initial rise before the arrival of the altcoin season, followed by a rotation of various altcoin sectors as funds flow into them. However, this bull market does not seem to exhibit such behavior. On Friday, Ki Young Ju stated on the social platform X:
The ratio of Bitcoin to altcoin trading volume on centralized exchanges (purple line), with the gray line representing the total market capitalization of altcoins. Source: Ki Young Ju
Ju reiterated his argument from late last year to explain the absence of the aforementioned capital rotation phenomenon. At that time, he noted that while market sentiment is positive, new liquidity is limited, which is why only a select few altcoins are able to stand 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 corporations. This has resulted in funds not naturally flowing toward altcoins.
Ju summarized the current operational status of the altcoin market, emphasizing the limited market funds and fierce competition, writing:
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