Is altcoin season already here? Answer depends on Bitcoin and…
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Altseason could have started already as there may not be a direct Bitcoin-to-altcoin rotation Money has started to flow out of memecoins and could all be going into altcoins At the time of writing, the altcoin market cap and CEX volume ratio seemed to present some compelling insights. Not only did the altcoin market cap surge past $1.5 trillion, but the volume ratio of altcoins to Bitcoin stood at 2.7x – A sign of an upcoming altseason. The hike indicated that stablecoin holders have been shifting towards alts, rather than directly converting BTC to altcoins. Interestingly, this isn’t a straightforward altseason driven by BTC’s dominance though. Rather, it’s been driven by trading volume, marking a shift in market behavior. While Bitcoin’s influence on altseasons has been traditionally dictated by its market dominance, the ongoing trend entails trading volume is the new barometer for altcoin interest. Source: CryptoQuant However, the notion of an altseason could be deceptive. Although trading volumes for altcoins have spiked, this rise is selective, impacting only certain segments of the altcoin market. This could mean that while some altcoins see significant gains, others might not benefit from the same level of investor enthusiasm. This selective enthusiasm hinted at a more nuanced, perhaps less robust altseason than in previous cycles, where a rising tide lifted all boats. Where is money flowing into? Tracking the Futures Open interest for memecoins such as PEPE, BONK, and WIF underlined distinct trends. The sharp decline in the Futures Open Interest for BONK and WIF, and a moderate downtick in PEPE suggested capital may be moving away from these memecoins. Notably, PEPE’s interest peaked at around $1.20 billion, before descending. BONK and WIF saw highs of around $600 million and a subsequent drop, reflecting potential shifts in investor sentiment. Source: X This could…
Filed under: News - @ February 21, 2025 9:25 pm