Altcoin Season Has Begun According to CryptoQuant, But There is a Catch

CryptoQuant CEO Ki Young Ju believes altcoin season, a period where alternative cryptocurrencies outperform Bitcoin, has begun. Traditionally, this happens when investors sell Bitcoin profits to buy altcoins, lowering Bitcoin's market share dominance. However, Young Ju observes that instead of capital rotating from Bitcoin, stablecoins are directly flowing into altcoins. Altcoin trading volume on centralized exchanges is now almost three times that of Bitcoin, suggesting stablecoin holders are directly investing in altcoins. This differs from the past when altcoin price increases correlated with Bitcoin's decreased market dominance. Young Ju previously theorized this change, attributing it to the rise of Bitcoin proxies like ETFs and MicroStrategy, which prevent capital rotation to altcoins. He predicts only altcoins with their own ETF-like versions or those within stablecoin or Bitcoin-supported ecosystems will thrive in the long term. Currently, Bitcoin is trading around $99,000, up 2%, while top altcoins like Ethereum, Solana, and Cardano are seeing gains exceeding 3%.