The long -awaited Altcoin season (alternative season) has arrived, according to the CEO Ki Young Ju cryptocant.
However, the analyst says that he plays by different rules, unlike the previous cycles driven by a clear capital rotation of Bitcoin to Altcoin.
The analyst calls the Altcoin season, but not as expected
The latest OS observations suggest that Stablecoin holders, not Bitcoin merchants, selective fuel altcoin profits, while market liquidity remains limited.
In a recent publication about X (previously Twitter), Ju declared that the alternative season has begun, citing a strong increase in Altcoins trade volumes. According to the analyst, the Altcoin negotiation volume is now 2.7 times greater than that of Bitcoin. However, Ju also pointed out that this is not a wide -based rally.
“It is a very selective alternative season … only a few coins are pumping. Without fresh liquidity, it feels like a PVP fight for a fixed cake,” he wrote.
This statement is aligned with its previous warnings. In January, Ki warned that the Altcoin market is still a zero sum game, with capital circulating among assets instead of seeing new tickets. In December, he also predicted that this alternative season would be “strange and challenging”, favoring only selected assets.
“Altcoins used to move together according to his correlation with BTC, but that pattern has now broken. Only a few begin to show independent trends as they attract new liquidity, ”Ki had written.
While some merchants are excited, others remain unconvinced. Robw, a user in X, questioned the definition of the alternative ju.
“Some chips are pumping, why should it be an alternative season? None of the usual metrics apply, but it is the alternative season if you really choose carefully, it does not sound like an alternative season, “Robw challenged.
Similarly, Deimosweb3 suggested that, although some Altcoins work well, the market has not yet entered a complete alternative season.
Fiscal movements and cryptography markets from China
A parallel discussion in the cryptographic community involves the recent fiscal maneuvers of China. Some speculate that China’s economic policies could inject liquidity into global markets, benefiting cryptography.
However, analysts urge caution, noting that China has not injected a new capital, but recalculated its M1 money supply to include demand deposits and prepaid funds.
“They did not inject a new capital. They “stressed” include other deposits and funds. There is no fresh impression ”, an articulated x user.
Local media confirm this, indicating that the Popular Bank of China, the Central Bank of the country, will include these elements from 2025.
The cryptographic researcher and Defi NFT Bear stressed that this change led to a dramatic increase of 67.59% in the informed M1 supply. However, he emphasized that it is not equivalent to the new financial liquidity markets.
Historical comparisons have also emerged with the 2020 money printing frenzy of the United States. The United States quickly increased its M1 money offer at that time, feeding a 16x increase in Altcoin market capitalization.
While China’s current actions differ, some merchants speculate that even a fraction of new liquidity that flows to cryptography could trigger another execution of bull.
“It remains to be seen whether or not this translates into another explosive crypto rally. But one thing is safe: when a large world economy infuses liquidity, it doesn’t matter how it is measured, financial markets tend to take note, and cryptography is often in the center of that conversation, “said Nft Bear.
Despite uncertainty, some Altcoins have overcome. Projects such as SEI (SEI), Sui (SUI), Zksync (ZK) and Story (IP) have attracted attention, possibly pointing out emerging narratives in space.
It remains to be seen if these profits are sustainable or simply increased in a fragmented market. However, analysts agree that the traditional metrics of the Altcoin season no longer apply.
The encryption market is changing, with Bitcoin that acts as an asset on paper through ETF (funds quoted in exchange) and institutional funds. Instead of a wide capital rotation of BTC to Alt, the Altcoins seem to be forging independent narratives and utility to attract capital.
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