Stablecoin Supply Increases as Analysts Predict Altcoin Rally
The supply of major stablecoins, including Tether's USDT and Circle's USDC, has increased, reaching new record highs. Analysts anticipate this could lead to a bullish trend in the altcoin market.
- Stablecoins are viewed as "dry powder" ready for reinvestment when market conditions improve.
- Tether (USDT) saw significant inflows to exchanges following recent deleveraging, indicating renewed interest from major players.
- Analysts believe stablecoin movements can precede notable market changes.
Potential for Altcoin Rally
Ki Young Ju, CEO of CryptoQuant, declared that an altcoin season has commenced, noting a shift from Bitcoin to altcoins in trading volume. The current altcoin trading volume is 2.7 times that of Bitcoin.
- Ju emphasized that alt seasons are now defined by trading volume rather than Bitcoin dominance.
- Rekt Capital noted potential reversal trends in the altcoin market after stabilization near $250 billion.
- Indicators suggest a double bottom pattern, with a possible upward trend if resistance levels are confirmed.