In the past three weeks, capital flows in the crypto market have been undergoing a quiet transformation. On-chain data shows that more than $35 billion of new funds have flowed into the market, with Bitcoin continuously climbing above $107,000, maintaining a strong dominant position, but a new problem is beginning to emerge:


Is the season for altcoins really here?


According to the Altcoin Season Index released by CoinMarketCap, the indicator has now risen to 24 points - although it has not yet officially entered the 'Altcoin Season' standard (which typically requires the index to exceed 75), it already indicates that some altcoins have begun to outperform Bitcoin, showing a structural migration of capital.



Altcoin index rises to 24: Subtle cracks under Bitcoin's dominance.


'Altcoin Season Index' is a real-time indicator used to measure whether altcoins are outperforming Bitcoin. The current index stands at 24, meaning that in the past 90 days, 24% of the top 100 market cap tokens have outperformed BTC.


What does this indicate?


Currently, the market is still dominated by Bitcoin, but over a quarter of the top assets among altcoins have experienced stronger gains. Against the backdrop of accelerated capital inflow, mainstream investors may have quietly begun preparing for the next phase of altcoin rotation.


This trend is also reflected in market performance - after Bitcoin's price broke through $107,000, there was volatility, but the AI sector, re-staking protocol tokens, and some small-cap tokens have been quietly rising.


This is also a potential signal for capital repositioning.



JPMorgan and VanEck's entry is driving the upgrade of market structure.


It is worth noting that traditional financial institutions are also accelerating their layout in on-chain assets.


JPMorgan recently completed its first tokenized US Treasury transaction based on a public blockchain, facilitated by token products provided by Ondo Finance, and supported by Chainlink oracle. This operation means that Wall Street giants are no longer satisfied with the 'security walls of private chains,' but are bringing real financial transactions into the open DeFi ecosystem.


At the same time, VanEck also announced a partnership with Securitize to launch a multi-chain US Treasury tokenization fund, directly deployed on major networks like Ethereum, Solana, and BNB Chain. These layouts are not just conceptual hype but represent a deep integration process of the crypto asset market with the traditional financial system.


The influx of traditional capital is providing new underlying support for the altcoin market and has also given rise to a new round of token value re-evaluation.



Policy momentum continues, and stablecoin legislation may reshape market dynamics.


On the policy front, the US (GENIUS Act) will vote on May 19, and if passed smoothly, it will establish the first federal regulatory framework for stablecoins in US history. This legislation requires:


  • Large stablecoin issuers are accepting Federal Reserve oversight;


  • All stablecoin assets must be supported 100% by US dollars or government bonds;


  • Tech giants like Meta are prohibited from issuing stablecoins;


  • Increase regulation on the use of bankruptcy protection and FDIC insurance.



This legislative process is not only a step towards regulatory transparency but also paves the way for the mainstream financialization of stablecoins.


For investors, the increase in policy certainty will directly affect capital preferences for highly compliant projects. It can be expected that stablecoin-related infrastructure and regulated compliant altcoins may become the core focus of capital in the coming months.


This is precisely the advantage of using AI research assistants like Mlion.ai. In terms of policy trends, on-chain address capital movements, and modeling regulatory sentiment, Mlion.ai can help users identify assets that are about to receive policy support or be affected by capital through RAG retrieval architecture and in-depth analysis.



Technical divergence intensifies: Is Bitcoin heading towards the '2021 double top structure'?


Although BTC has broken through $107,000, technical analyst Oliver Knight raised a cautionary point: the current rise may be repeating the 'double top structure' of 2021.


He listed several signals worth paying attention to:


  • RSI showed three bearish divergences in March, December, and May;


  • Trading volume during the breakout was below historical highs;


  • CME open interest and futures trading volume have not kept pace with price increases;


  • Contract open interest has decreased by 13% from its high, but the price has only dropped by 5.8%.



These technical indicators suggest that despite new price highs, the momentum of the rise is weakening, and the short-term upside potential for Bitcoin may be limited, with altcoins becoming potential successors.



Is the capital for altcoins ready? Don't wait for the 'Altcoin Season' index to break 75 before taking action.


Historical experience tells us that a true Altseason is always pre-emptively arranged before the index breaks 75. When everyone is shouting 'altcoins are taking off,' the opportunities have basically been consumed by institutions or smart money.


And on-chain data tells us - capital has been quietly repositioning. Mlion.ai's on-chain address analysis and AI research report features can help you identify whale wallet repositioning paths, trends in popular token capital inflows, and real holding changes in real time, allowing you to capture 'unexploited assets' at the first opportunity.


In addition, Mlion.ai also offers:


  • Deep analysis of news flashes, interpreting investment opportunities behind each piece of news;


  • Cross-chain AI Swap function, helping you efficiently complete asset conversions and seize rotation rhythms;


  • AI automatic charting of technical indicators, one-click identification of trend critical points;


  • NFT Agent, Restaking analysis sections, etc., providing decision support for emerging field layouts.




Conclusion: The spring for altcoins may not have officially arrived yet, but the chips have quietly changed hands.


Capital has entered the market, the structure has loosened, policies are gradually clarifying, and technical adjustments are brewing. Whether it's speculation, value investing, or rotation strategies, today's market landscape is far from comparable to that at the beginning of the year.


The question now is not 'Is altcoin season here?' but rather:


'Are you ready?'

#山寨

Disclaimer: The above content is for information sharing only and does not constitute any investment advice. Investment carries risks; market entry should be cautious.