Insufficient Liquidity: The 'Fatal Flaw' of Altcoin Season
Altcoin season requires the market to have sufficient liquidity to support the synchronized rise of BTC and altcoins. However, the current macro environment still faces multiple constraints:
Federal Reserve rate cuts delayed: The market expects the first rate cut in September, but the transmission of liquidity easing to the crypto market will take longer.
Yen interest rate hike shock: The Bank of Japan raised interest rates to 0.5%, triggering a return of funds to traditional safe-haven assets, exacerbating volatility in the crypto market, with highly leveraged altcoins being the hardest hit.
Stablecoin market cap contraction: USDT.D has not significantly declined, indicating that funds have not flowed into altcoins on a large scale, and the market still centers around BTC as the core safe-haven asset.
