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<p>The altcoin market is currently on a roll, with several cryptocurrencies skyrocketing to multi-year highs, but Ki Young Ju, the founder and CEO of blockchain analytics platform CryptoQuant, believes this altseason will not play out as traders and investors expected.</p><p>In an X post, Ju<a href="https://x.com/ki_young_ju/status/1863799907649507357" rel="noopener noreferrer nofollow"> insisted</a> that this altcoin season will be “weird and challenging” because only a few chosen assets will record significant gains and “win the game.” According to the CryptoQuant founder, the altcoin market sentiment is good, but the sector is not seeing a notable inflow of fresh liquidity, and this could hamper the growth of most crypto assets.</p><h2 id="altseason-to-play-out-differently">Altseason to Play Out Differently</h2><p>The altseason refers to when capital flows from bitcoin (BTC) to other cryptocurrencies. During this time, BTC retraces its steps and consolidates within a particular range, its dominance and market share declining, while altcoins skyrocket and possibly hit new highs.</p><p>From Ju’s perspective, BTC is drifting away from the crypto ecosystem and developing its own paper-based layer-2 entity. The CryptoQuant CEO said this development is being pushed by Bitcoin spot and futures exchange-traded funds (<a href="https://cryptopotato.com/weekly-etf-recap-all-green-days-for-bitcoin-but-not-for-ethereum/" rel="noopener noreferrer nofollow">ETFs</a>) and the stocks of Bitcoin-friendly companies like <a href="https://cryptopotato.com/another-monday-another-buy-microstrategy-adds-15400-btc-for-1-5-billion/" rel="noopener noreferrer nofollow">MicroStrategy</a> (MSTR).</p><p>Unfortunately, bridging from the paper-based L2 Bitcoin ecosystem to altcoins is impossible.&nbsp;Ju explained that altcoins used to move together due to their correlation with BTC; however, that pattern has broken, and only a handful of cryptocurrencies are showing independent traits because they are attracting new liquidity.</p><blockquote><p>“Alt season is no longer defined by asset rotation from #Bitcoin. The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation,” the crypto analyst clarified in a separate <a href="https://x.com/ki_young_ju/status/1863408152571769159" rel="noopener noreferrer nofollow">tweet</a>.</p></blockquote><h2 id="following-bitcoin-s-path">Following Bitcoin’s Path</h2><p>The CryptoQuant founder’s opinion is substantiated by altcoin market dynamics over the past 24 hours. While most large-cap altcoins have been in the red, others, like Ripple’s native token, <a href="https://cryptopotato.com/hbar-xrp-defy-market-sentiment-as-btc-dumps-by-3k-in-hours-market-watch/" rel="noopener noreferrer nofollow">XRP</a>, and Chainlink (<a href="https://cryptopotato.com/chainlink-link-explodes-37-to-2-year-high-on-eu-tokenized-securities-partnership/" rel="noopener noreferrer nofollow">LINK</a>), have skyrocketed to levels not seen in years.</p><p>Meanwhile, Ju asserted that altcoins now have two options: build a real internet money ecosystem using stablecoins and BTC or create paper-wrapped versions like Bitcoin. He then suggested that altcoin investors find cryptocurrencies that can work on one of the two options and hold them long-term.</p><p>The post <a href="https://cryptopotato.com/heres-why-cryptoquant-ceo-says-this-altseason-wont-play-out-as-expected/" rel="noopener noreferrer nofollow">Here’s Why CryptoQuant CEO Says This Altseason Won’t Play Out as Expected</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Here’s Why CryptoQuant CEO Says This Altseason Won’t Play Out as Expected

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