Are you ready for round two? Cryptoquant CEO says Altseason has already begun

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As the cycle progresses, many investors are waiting for a long-standing AltS season, and opinions are divided on whether or not it will happen. Some market watchers have confirmed that Altcoins (Alt) is preparing for an explosive breakout, while others, including Cryptoquant’s CEO, suggest different outlooks.

There are very few cryptocurrencies to “survive” AltSeason

On Friday, Ki Young Ju, founder and CEO of Cryptoquant, confirmed that Altseason had begun. In the X-thread, Ju noted that this cycle is “supported by Stablecoin holders”, suggesting that there is no direct ALT spin from Bitcoin.

According to JU, Bitcoin is no longer a quotation mark cryptocurrency, and Bitcoin (BTC) advantage has not no longer defined AltSeason. In a December post, he explained that “Altcoins were used to move together based on their correlation with BTC,” but this pattern is currently broken.

Instead, he said that the volume of trading is the metric that defines it, and that Altcoins currently has 2.7 times the volume of Bitcoin. JU also considers this to be a highly selective and challenging AltSeseason. This is just a powerful user case and a few Altcoins where the story is expected to flourish.

He added that despite good market sentiment, there was no fresh liquidity and “feels like a PVP fight over a fixed pie.” As a result, the Altcoin battle is “intensifying”, and only a few are pumping this AltSeason to attract new fluidity.

The Altcoin market is currently a zero-sum PVP game. Bitcoin doubled its market capitalization, but ALT’s market capitalization is still below its previous ATH, spinning themselves without fresh capital inflows. Only a few alts with powerful use cases and stories survive.

Altcoin ready for the next leg

Trader Crypto Yoddha suggested that Altcoins are “ready for round two” after their recent performance. According to the post, the Crypto market, excluding BTC and ETH, is following the 2020-2021 Playbook.

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During the final cycle, the altcoin experienced two legs towards the top of the cycle, experiencing an all-time high of $1.13 trillion. In the “first round,” they saw a small re-accumulation stage before erupting from the accumulation period and surged to the previous top.

After regaining this resistance level, Altcoins began “Round 2” and achieved various new highs before reaching a new cycle top. Yodda pointed out that the market was finishing its first round as he tested the top of the final cycle during the post-election pump.

Analyst Rekt Capital has declared that the market capitalization of cryptos, excluding the top 10 tokens, has “completed the second part of the double bottom.” He explained that since the February 3 revision, Altcoins had consolidated the $250 billion to $280 billion range.