BTC's crypto market dominance is holding above a key support, signaling Bitcoin may keep absorbing capital from altcoins and delay a broader altseason.
Cryptocurrency traders are no longer using Bitcoin (BTC) profits to buy altcoins as they did in previous bull cycles, raising doubts about whether a broad “altseason” can return.
The old altseason trade is no longer working the way it did in previous bull cycles, according to Ki Young Ju, CEO of CryptoQuant.
In a Saturday post, Ju said the Bitcoin-to-altcoin rotation trend has “basically disappeared,” citing CryptoQuant data showing BTC-pair altcoin trading volume has collapsed to its weakest levels since 2021.
Aggregated altcoin trading volume for BTC-priced pairs. Source: CryptoQuant
The metric excludes major altcoins such as Ether (ETH), XRP (XRP), BNB (BNB) and Solana (SOL), focusing instead on mid- and lower-cap altcoins traded against Bitcoin on centralized exchanges.
In simple terms, it shows whether traders are using BTC to buy smaller altcoins.
That flow surged in 2017 and 2021, helping fuel record altseasons. But Young Ju’s chart shows BTC-pair altcoin volume remains near post-2021 lows, suggesting Bitcoin is no longer the main liquidity source for altcoin speculation.
“The era of alts pumping just because BTC pumps may be over,” Young Ju said.
The wider altcoin market has become more concentrated, excluding stablecoins.
As of Saturday, the non-BTC, non-stablecoin crypto market was worth roughly $600 billion. The top 10 non-stablecoin altcoins accounted for about $483 billion of that total, or roughly 80.5%.
TOTAL crypto market excluding Bitcoin and all stablecoins. Source: TradingView
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
