The excitement for the Altcoin season continues in the crypto market. However, the data show that the expected bull run will not start immediately. Recent developments in the market reveal that capital flows are directed to stabilcoins instead of subcoins. While investors escape the risk, Bitcoin’s market domination is approaching a critical threshold.
Investors choose stabilcoins instead of subcoins
Crypto analyst Ali Martinez states that there is a major change in capital movements. In the past bull cycles, there would be a large amount of funding flow from Bitcoin and Ethereum to the subcoins. However, in this cycle, investors are turning to stabilcoins instead of subcoins.
In recent months, Tether’s (USDT) supply increased by $ 20 billion to $ 140 billion. USD Coin (USDC) increased its total supply to $ 52 billion with a growth of 17 billion dollars. This great increase shows that investors are looking for a safe harbor. If the stabilcoin liquidity turns to the crypto market again, a major movement may be experienced for subcoins.
When Ethereum is weak, the subcoins cannot be strengthened
In past cycles, the rise of Ethereum would trigger the start of the Altcoin season. Trends such as ICO explosion, defi writing and NFT fury were led by ETH. But now Ethereum is stagnant.
Crypto analyst Picolas Cage says ETH should rise to recover the subcoins. If Ethereum does not enter a strong trend of ascension, it can be difficult for Altcoins to start an effective bull run on the overall market. Investors are now directed to alternative Layer-1 projects and speculative tokens. Ethereum’s re -winning market power can be a critical turning point for Altcoin investors.
Bitcoin dominance for the Altcoin season is important
Bitcoin’s market domination should reach a critical level for the start of the Altcoin season. According to the analyst rect Capital, the Bitcoin dominance does not begin until the Dominance of Bitcoin increases more than 70 %. Bitcoin’s market domination is increasing, but has not yet reached enough. As with past cycles, BTC dominance reaches 71 %and then withdrawn, the subcoin market may be explosion.
In addition, global economic developments and regulations can also guide the market. For now, the market waiting for the market, but the Altcoin season can start soon. Investors should closely follow Ethereum’s price movements and Bitcoin dominance. If the capital begins to flow into the subcoins again, a large rally may be experienced in the Altcoin market!
