Head of research company CryptoQuant Ki Yeon Ju advises buying altcoins instead of bitcoins in February 2025.
The altcoin season has begun. There will be no direct rotation [of capital] from Bitcoin to altcoins, but stablecoin owners prefer altcoins. Altcoin trading volume is 2,7 times higher than Bitcoin turnover. The level of BTC dominance no longer determines the start of the altcoin season, as evidenced by the trading volume, — wrote Key.
Zhu published a chart showing that altcoin trading volume on centralized exchanges has been growing since late 2024. A similar situation was observed in 2021, when the rate of many digital assets rapidly increased during the altcoin season. Therefore, by analogy, it can be assumed that the situation will repeat itself, and altcoins will rise in price against the backdrop of stagnation in the Bitcoin rate.
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Altcoin capitalization change (gray line) and altcoin trading volume (blue)
Key also noted that the altcoin season that he believes will begin will be extremely selective. That is, he expects the value of a limited number of virtual currencies to increase instead of a frontal pump. Key believes that the model of the last altcoin season, which occurred in 2021, no longer works. Therefore, he proposed a new mechanic, according to which:
- The price of altcoins with the highest trading volume will rise first;
- Then the value of the altcoins on which they are based will increase. ETF .
If we consider only the US market, ETFs are issued on the basis of only one altcoin: Ethereum. Accordingly, ETH should be the winner of the bull rally within the altcoin season. However, there are no signs of recovery in the market for this cryptocurrency. Over the past 24 hours, the Ethereum rate fell by 4%, despite the fact that the exchange bybit bought ETH for $742 million in exchange for coins stolen as a result of a hacker attack.