🔹 Key Takeaways

  • CryptoQuant CEO, Ju Ki-Young, declares that the 2025 altcoin season has begun.

  • Unlike past trends, Bitcoin (BTC) is no longer the main trading currency for altcoins.

  • The market is seeing more "PvP" trading, meaning funds are circulating among existing investors rather than new capital entering.

The 2025 Altcoin Season: A Different Trend

The term "altcoin season" typically refers to a market phase where altcoins significantly outperform Bitcoin. Historically, this was driven by investors moving profits from Bitcoin into smaller-cap coins, causing a surge in altcoin prices. However, 2025's altcoin season looks different.

CEX Volume: Bitcoin vs. Altcoins

Bitcoin's Changing Role

On February 21, CryptoQuant CEO Ju Ki-Young stated that Bitcoin is no longer the quote currency for altcoin trades. Instead, stablecoins like USDT are becoming the preferred medium for purchasing altcoins. He backed his claim with data, noting that altcoin trading volume is now 2.7 times higher than BTC’s.

This marks a fundamental shift. In previous bull markets, investors rotated funds from Bitcoin to altcoins, but this time, there’s little evidence of direct BTC-to-alt trading. Instead, traders are using stablecoins to jump into altcoins directly.

Is There New Money in the Market?

Despite the increase in altcoin activity, Ju warns that this is a "highly selective altcoin season." Unlike previous cycles, where a wide range of altcoins surged together, this time only a few strong projects are seeing gains.

Additionally, Bitcoin's market cap has doubled, yet the total altcoin market cap hasn’t reached its previous all-time high. This suggests that rather than new money entering the market, existing capital is circulating among traders.

Ju describes this as a PvP (player-versus-player) market, meaning that gains come at another trader's loss. This is different from a bull run, where fresh capital drives asset prices up across the board.

BTC’s Growing Independence from Altcoins

Another key insight is that BTC and altcoins are becoming increasingly separate asset classes. Historically, Bitcoin and altcoins moved in tandem, but that relationship is weakening. Ju points out that BTC is becoming more integrated with traditional finance, meaning its price movements may be influenced by institutional investors rather than retail-driven altcoin speculation.

In previous alt seasons, BTC dominance (its share of the total crypto market cap) was a key indicator. But in 2025, BTC dominance no longer dictates the start of an alt season. Instead, trading volume is the key metric.

Which Altcoins Will Survive?

Not all altcoins are benefitting from this shift. Only projects with strong fundamentals and compelling narratives are thriving. Ju warns that many weak projects will struggle or disappear entirely.

Investors should be cautious: this is not a typical bull market. Instead, we are seeing a selective rally where only a few winners emerge.

What to Watch in 2025

  1. Altcoin trading volume – If it continues to grow, the alt season could extend.

  2. BTC-to-altcoin capital flows – If BTC holders start rotating funds into altcoins, it may signal a stronger alt season.

  3. New capital inflows – If fresh money enters the market, it could lead to a broader altcoin rally.

The 2025 altcoin season is here, but it's different from what traders are used to. Instead of easy gains across all altcoins, only a few will truly benefit.

What do you think? Is this the start of a new market cycle, or just a temporary shift?