The post Stablecoin liquidity shaping altcoin markets amid Bitcoin rotation decline appeared on BitcoinEthereumNews.com.

CryptoQuant CEO Ki Young Ju has attributed the surge in altcoin trading to increased stablecoin liquidity. In a post on X, Young Ju explained that most of the trading volume for altcoins is tied to stablecoins and fiat pairs. According to him, rotation from Bitcoin no longer defines the alt season, a major departure from previous bull runs. According to Cryptoquant data, the aggregated trading volume for stablecoin pairs has reached peak levels this year, while the trading volume for Bitcoin pairs is down. Young Ju said: “Alt season is no longer defined by asset rotation from #Bitcoin. Stablecoin liquidity better explains the altcoin markets.” His comments capture the significant difference between the current and previous bull markets. Historically, the alt season, which refers to when these tokens record a surge in value and outshine Bitcoin, usually happens due to investors rotating capital out of Bitcoin into other cryptocurrencies, the alternatives. Stablecoin liquidity now defines altcoin markets better – CryptoQuant However, this has not happened, leading many market observers to question why alternative cryptos have not entered their season. Young Ju now believes that investors need to pay attention to stablecoins liquidity instead of focusing on capital rotation out of Bitcoin. Institutional interest in Bitcoin ends capital rotation to altcoins  Young Ju had previously explained why the altcoin season is delayed. According to him, institutional investors and spot exchange-traded funds (ETFs) are driving the current Bitcoin rally, and this group does not buy on exchanges nor do they care much for Bitcoin alternatives. He said: “Unlike crypto exchange users, institutional investors and ETF buyers have no intention of rotating their assets from Bitcoin to altcoins. Moreover, as they operate outside of crypto exchanges, asset rotation becomes inherently less feasible.” The limited exposure of these institutional investors to altcoins or exchanges…

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Filed under: News - @ December 2, 2024 12:17 pm