Altcoin Season: The Wild West of Crypto

Well, shucks, folks! 🤠 According to CryptoQuant CEO Ki Young Ju, the altcoin season has finally arrived, but don’t get too excited just yet. This ain’t your grandma’s alt season, if you know what I mean. 😏

Seems that stablecoin holders, not Bitcoin traders, are fueling the gains of select altcoins, while market liquidity remains as dry as the Sahara desert. 🌀

Analyst Calls Altcoin Season—But Not as Expected

Ju’s observations suggest that altcoin trading volumes are up, but it’s not a broad-based rally. In fact, it’s more like a “PvP fight over a fixed pie,” as he put it. 🍰

“It’s a very selective alt season…Only a few coins are pumping. With no fresh liquidity, it feels like a PvP fight over a fixed pie,” he wrote.

This ain’t exactly what folks were expecting, but hey, when has the crypto market ever been predictable? 🤷‍♂️

Some traders are excited, while others are skeptical. RobW, a user on X, questioned Ju’s definition of alt season.

“A few tokens are pumping, so it must be alt season? None of the usual metrics apply, but it’s alt season if you pick really carefully, doesn’t sound like an alt season,” RobW challenged.

China’s Fiscal Moves and Crypto Markets

Meanwhile, China’s been making some fiscal moves that have folks talking. Some think it could inject liquidity into global markets, benefiting crypto. 💸

But analysts are cautioning that China’s not exactly printing new money. They’re just “recalculating” their M1 money supply to include demand deposits and prepaid funds. 📊

“They didn’t inject new capital. They “recalculated” it to include other deposits and funds. There is no fresh print,” a user on X articulated.

Local media confirms this, and crypto researcher NFT Bear highlighted that this change led to a 67.59% increase in reported M1 supply. But he emphasized that it don’t mean fresh liquidity is hitting financial markets. 🚫

Historical comparisons to the US’s 2020 money-printing frenzy have surfaced, but China’s current actions are different. Some traders speculate that even a fraction of new liquidity flowing into crypto could trigger another bull run. 🐂

“Whether or not this translates into another explosive crypto rally remains to be seen. But one thing’s for sure: when a major world economy infuses liquidity—no matter how it’s measured—financial markets tend to take notice, and crypto is often at the center of that conversation,” NFT Bear indicated.

Despite the uncertainty, some altcoins have outperformed. Projects like Sei (SEI), Sui (SUI), Zksync (ZK), and Story (IP) have attracted attention, possibly signaling emerging narratives in the space. 📈

Whether these gains are sustainable or just temporary surges in a fragmented market remains to be seen. But one thing’s for sure: the crypto market is changin’ faster than a rattlesnake on a hot summer day. 🔥

2025-02-21 15:47

Analyst Calls Altcoin Season—But Not as Expected

China’s Fiscal Moves and Crypto Markets

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