The cryptocurrency market continues to surprise analysts, investors, and traders with its rapid changes. Recently, several key statements and actions by major players have drawn attention, signaling the beginning of a new phase in the cryptocurrency market — the altseason.
Altseason: Not the Same as Before
The head of CryptoQuant, an analyst who tracks key trends in the cryptocurrency market, recently stated that the altseason has already begun. However, as she emphasized, this altseason is significantly different from those we have seen in the past. First of all, the analyst notes that there is no “direct rotation from BTC to altcoins,” but there is a notable shift towards altcoins by stablecoin holders. According to her, this trend currently has a 2.7x ratio, meaning stablecoins are converted into altcoins 2.5 times more often than into Bitcoin.
Another important detail is the fact that Bitcoin’s dominance (BTC) no longer determines the start of the altseason. Traditionally, altseason is associated with the rise of altcoins after Bitcoin reaches a peak and begins to correct. However, in the current situation, the rise of altcoins occurs amid increased interest in various cryptocurrencies, and not always related to Bitcoin’s dynamics.
This phenomenon is called “selective altseason.” Unlike the mass takeover of the market by altcoins, the current altseason represents a selective rise in individual cryptocurrencies that may attract investor attention due to unique technologies, partnerships, or new opportunities. As shown by analysts’ data, stablecoin holders prefer converting their assets into altcoins, further confirming this trend’s activation.
As CryptoQuant’s analyst notes, it is important to remember that under these conditions, one must conduct their own research (DYOR – Do Your Own Research) to understand which altcoins might show growth and which may be less successful.
South African Company Altvest Capital Plans Invests in BTC
While interest in altcoins grows, traditional cryptocurrencies like Bitcoin remain at the forefront. South African company Altvest Capital Plans recently announced plans to invest $10 million in Bitcoin purchases. This statement highlights the continuing interest in Bitcoin as a primary asset, perceived as a safe asset amid global uncertainty.
Bitcoin continues to be the main cryptocurrency for institutional investors, as well as for large companies seeking new ways to diversify their assets. Altvest Capital Plans’ investments in Bitcoin underscore that despite the rising interest in altcoins, the oldest cryptocurrency maintains its role as “digital gold.”
Companies Buy Bitcoin in Hopes of Rescue
A curious trend has also been noted by Bloomberg analysts. According to their statement, in recent months, dying companies have begun investing money in Bitcoin in hopes of being rescued. These companies are not investing in the development of their businesses; rather, they are directing funds into cryptocurrency, hoping to attract attention to their stocks.
Some companies see Bitcoin as a way to attract investors by boosting their stock price through the positive image associated with cryptocurrencies. This phenomenon can be both positive and risky, as long-term success requires companies to focus on improving their operations. However, in the volatile cryptocurrency market, buying Bitcoin can be a quick and attractive way for struggling companies to create artificial interest in their stocks.
Judging by these events, the cryptocurrency market is entering a new phase. The altseason, as described by CryptoQuant’s analyst, may become even more diverse and complex than in previous years. Investors must be ready for more intricate trends and choose cryptocurrencies that truly have growth potential, not just follow general trends.
Meanwhile, Bitcoin continues to hold its dominant position in the market, and its role as a safe asset for institutional investors and companies seeking diversification is only strengthening. However, as new trends show, the cryptocurrency market is no longer limited to just Bitcoin, and altseason may become more selective than ever before.
For investors looking to benefit from these changes, it’s important to monitor the situation and, as CryptoQuant’s analyst advises, do their own research to not miss out on potentially profitable altcoins.
