Major cryptocurrency assets, excluding Bitcoinusually known as Altcoins, are currently demonstrating strong momentum, rising significantly to pivotal levels in the past few days. While there is the belief that the tokens are surging due to a drop in Bitcoin's dominance, several seasoned market experts think otherwise.
Has The Much-Awaited Altcoin Season Begun?
In an insightful prognosis concerning the much-anticipated altcoin season, Jamie Coutts, the chief crypto analyst at Real Vision, has shed light on the key factors that determine alt season. The crypto expert has debunked the widespread notion that altseason is solely determined by Bitcoin's market dominance.
Jamie Coutts' claims contradictory traditional market viewpoints and inspires traders to take a more comprehensive approach when analyzing the likelihood of an altcoin season. This implies that Bitcoin's dominance is not the definitive factor for forecasting altcoin rallies despite its capability to provide a general view of market sentiment.
According to the crypto analyst, alt season is based on market breadth, such as the number of digital assets outperforming BTCrather than the widely believed Bitcoin dominance chart, which has recently witnessed a drop.
It is important to note that altseason typically occurs when the Altseason indicator rises above 50%, and the market is experiencing an upside trend. Meanwhile, the indicator is currently positioned at 67%, indicating that the much-awaited season has already begun.
Although Jamie Coutts' prognosis suggests that the alt season has started, Daan Crypto Trades, an analyst and investor, claims that the Alt Season index has not yet reached the required level to consider the season to have kicked off.
The key market metric, which has risen to 67% after rapid growth over the past week, does not mean that the alt season is now underway. Instead, it only implies that 67% of the top 50 altcoins in the last 90 days have performed better than Bitcoin. Meanwhile, when the metric is 75% or higher, an altcoin season can be officially declared live.
Asset Rotation Concept From Bitcoin Slowly Diminishing
CryptoQuant's founder and Chief Executive Officer (CEO) Ki Young Ju has also offered his perspective on the pressing subject, noting that the concept of alt season may no longer hinge on the conventional metric of asset rotation from Bitcoin. This might imply that the narrative is shifting due to dynamic factors such as the increasing usefulness of alts on an individual basis and distinct market drivers.
While addressing recent spikes in the alt market, Ki Young Ju pointed out that Stablecoin liquidity provides a better insight into the market's direction. Furthermore, he noted that the current surge in altcoin trading volume is driven by Stablecoin and fiat pairings rather than BTC pairs, which reflects real market expansion rather than asset rotation.
Featured image from Unsplash, chart from Tradingview.com
