As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by Ki Young Ju’s insights on the current altseason. His perspective, rooted in the unique vantage point of his work at CryptoQuant, offers a refreshing take on the traditional understanding of an altseason.


At present, the market for alternative cryptocurrencies (altcoins) is experiencing a surge, with numerous digital currencies reaching multi-year peak values. However, Ki Young Ju, the brainchild behind blockchain analytics platform CryptoQuant, posits that this altcoin season may not unfold as anticipated by traders and investors.

In a recent post on X, Ju predicted that the current altcoin season will be unusual and demanding, as only select coins are expected to experience substantial increases and ultimately emerge victorious. The CryptoQuant founder noted that while the overall sentiment in the altcoin market is positive, there’s been little influx of new liquidity, which may impede the growth of many cryptocurrencies.

Altseason to Play Out Differently

As a crypto investor, I’ve come to understand that an “altseason” is a period when investment capital starts moving from Bitcoin (BTC) towards other digital currencies. During these times, Bitcoin tends to take a step back and consolidate within a specific price range. This results in its dominance and market share decreasing, while alternative coins (altcoins) experience significant growth and may even reach new record highs.

Ju views Bitcoin as gradually distancing itself from the broader cryptocurrency landscape, instead focusing on building a self-contained paper-based layer-2 structure. This transformation, according to CryptoQuant’s CEO, is primarily driven by Bitcoin spot and futures exchange-traded funds (ETFs) and the stocks of Bitcoin-aligned companies such as MicroStrategy (MSTR).

Unfortunately, transitioning from the traditional L2 Bitcoin system into other digital currencies (altcoins) isn’t feasible at this time. Previously, altcoins tended to move in unison with BTC due to their correlation; however, that pattern has since broken. Currently, only a few cryptocurrencies exhibit unique characteristics because they are drawing new liquidity and attracting attention independently.

In simpler terms, the analyst explained that “Alt season” is no longer solely based on shifting investments from Bitcoin to other cryptocurrencies. Instead, the increase in trading volume for altcoins is coming from pairs with stablecoins and fiat currencies, indicating genuine market expansion rather than just a change in asset allocation.

Following Bitcoin’s Path

The founder of CryptoQuant’s viewpoint is backed up by the movements in the altcoin market over the past day. Contrary to most large-cap altcoins that have been declining, coins such as Ripple‘s XRP and Chainlink (LINK) have surged to unprecedented heights in recent times.

In essence, Ju proposed that altcoins currently face two possible paths: they could construct a genuine digital money infrastructure using stablecoins and Bitcoin, or develop tokenized versions similar to Bitcoin on paper. He recommended that investors in altcoins should seek out cryptocurrencies capable of functioning within one of these two approaches and maintain their investments long-term.

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2024-12-03 19:07