CryptoQuant CEO Ki Young Ju says that the long-awaited “altcoin season” is finally here, but it’s different from previous ones.
Ju explains that instead of Bitcoin traders moving money into altcoins, it’s stablecoin holders who are driving the rise of some altcoins, while the overall market still lacks enough money to support a big rally.
In a recent post on X (formerly Twitter), Ju pointed out that altcoin trading volumes have surged and are now 2.7 times higher than Bitcoin’s. However, he also stressed that this isn’t a general market rise. “It’s a very selective alt season… Only a few coins are rising, and with no new money coming in, it feels like a competition over limited resources,” he said.
This view matches Ki Young Ju’s earlier warnings. Back in January, Ki had warned that the altcoin market is a zero-sum game, meaning that money is just moving between different assets instead of new money flowing in. In December, he also predicted that this altcoin season would be “strange and difficult,” benefiting only a few select assets.
“Altcoins used to rise together based on their connection to Bitcoin, but that pattern has changed. Now, only a few are starting to show their own trends as they bring in new money,” Ki had explained.
While some traders are excited about the market, others are not convinced. RobW, a user on X, questioned Ju’s idea of altcoin season.
“A few tokens are rising, so it must be altcoin season? None of the usual signs are there, but it’s alt season if you pick very carefully. Doesn’t sound like an alt season,” RobW said.
Likewise, DeimosWeb3 pointed out that although some altcoins are doing well, the market hasn’t fully entered an altcoin season yet..
China’s Fiscal Moves and Crypto Markets
A separate topic in the crypto community is China’s recent financial moves. Some people think that China’s economic policies could bring liquidity into global markets, potentially benefiting crypto.
However, analysts are cautioning that China hasn’t added new capital. Instead, it has adjusted its M1 money supply by including demand deposits and prepaid funds.
“They didn’t add new money; they just ‘recalculated’ it to include other deposits and funds. No fresh money is being printed,” a user on X explained.
Local media confirms this, saying that the People’s Bank of China will start including these elements in 2025.
Crypto and DeFi researcher NFT Bear pointed out that this change led to a huge 67.59% rise in the reported M1 supply, but he stressed that this doesn’t mean new liquidity is flowing into financial markets.
Some are drawing comparisons to the U.S. money-printing spree in 2020, when the U.S. quickly increased its M1 money supply, leading to a 16x jump in altcoin market capitalization.
Though China’s actions are different, some traders think even a small amount of new liquidity entering crypto could spark another bull run.
“Whether this leads to another big crypto rally is uncertain, but one thing is clear: when a major global economy adds liquidity, no matter how it’s measured, financial markets take notice, and crypto is usually part of that discussion,” NFT Bear said.
Despite the uncertainty, some altcoins have performed well. Projects like Sei (SEI), Sui (SUI), Zksync (ZK), and Story (IP) have gained attention, possibly signaling new trends in the space.
It’s unclear whether these gains will last or if they’re just short-term spikes in a market that’s still divided. However, analysts agree that the usual ways of measuring altcoin seasons don’t apply anymore.
The crypto market is changing, with Bitcoin now acting like a paper-based asset through ETFs (exchange-traded funds) and institutional investments. Instead of money moving from Bitcoin to altcoins, altcoins seem to be developing their own stories and uses to attract investors.
The article “CryptoQuant CEO Declares Altcoin Season Amid Liquidity Scramble, But There’s A Catch” was first published on BeInCrypto.
