CryptoQuant CEO allowed the possibility of the altcoin season’s beginning

The analyst noted that ETH is beginning to outperform BTC in terms of yield

20.06.2024 - 08:15

3 min

The material is not an investment recommendation and is published for informational purposes only.

What’s new? The founder and head of the analytics blockchain platform CryptoQuant Ki Young Ju said that the crypto market is in the state of the beginning of the altcoin season. It is a period when such assets are ahead of bitcoin in terms of profitability. This is indicated by MVRV (market value to realized value ratio) figures for Ethereum and BTC, he said.

Source: X.com

What else is known? The analyst specified that the MVRV of the largest altcoin is growing faster than the same indicator of the first cryptocurrency. This allows us to assume that the ETH market is heating up relative to on-chain indicators.

Young Ju notes that this altcoin season, it is ETH that will demonstrate outperformance primarily as the market awaits the approval of asset-based spot exchange-traded funds (ETFs) in the United States. At the same time, according to historical data, other altcoins are starting to grow after ETH.

In his predictions, the expert relied on the MVRV-based altcoin season indicator. The indicator allows determining market trends by calculating the difference between the average MVRV for ETH and BTC respectively over the last 180 days.

В CryptoQuant зафиксировали рекордный за год суточный отток ETH с биржи Coinbase

С 11 июня пользователи вывели с платформы свыше 336 000 монет

Two days ago, Young Ju also published some current characteristics of the bitcoin market. According to him, the asset’s price is under pressure as a result of sales from miners and long-term holders, while spot BTC ETFs and custodial wallets are experiencing a shortage of new inflows of the asset.

In the past two weeks, for example, institutional long-term holders sold $1,2 billion worth of coins through brokers, while $460 million was withdrawn from ETFs over the same period. Then the analyst admitted that if this liquidity is not bought on over-the-counter (OTC) platforms, brokers may bring coins to the exchanges, which will affect the market.

Source: X.com