CryptoQuant CEO Declares Altseason Has Begun as Altcoins Prepare for Growth
Investors are monitoring the potential for an Altseason, with divided opinions on its occurrence. Some market analysts predict a breakout for Altcoins, while others, such as CryptoQuant CEO Ki Young Ju, suggest a more selective environment.
Key Insights on Altseason
- Ki Young Ju claims that the Altseason has started, but emphasizes changes in market dynamics.
- Bitcoin's dominance no longer dictates Altcoin movements; trading volume is now the defining metric.
- Altcoins currently exhibit 2.7 times the trading volume of Bitcoin.
- The market sentiment remains positive, but fresh liquidity is lacking, creating intense competition among Altcoins.
- Only select Altcoins with strong use cases and narratives are expected to thrive.
Ju notes that the Altcoin market operates like a zero-sum game, with Bitcoin's market cap increasing while the overall Altcoin market cap remains below previous all-time highs.
Outlook for Altcoins
- Trader Crypto Yoddha indicates that Altcoins are prepared for a second surge, following patterns from the 2020-2021 cycle.
- During the past cycle, Altcoins experienced two significant phases towards their peak market cap of $1.13 trillion.
- The current market is finishing its initial phase, targeting past resistance levels.
- Analyst Rekt Capital reports that the Altcoin market cap has been consolidating between $250 billion and $280 billion since early February.
- A breakout requires closing above $280 billion and retesting it as support to aim for the $300 billion mark.
- Analyst Carl Runefelt highlights a parabolic move in Altcoins after exiting a descending channel, indicating a need to reclaim the $300 billion resistance.
