FX.co ★ Altcoin market poised for breakout as stablecoin inflows surge

Major shifts are underway in the crypto market. The altcoin season may be just around the corner, with several key indicators pointing to a potential surge in liquidity. According to analysts, an outflow of funds from Bitcoin coupled with a flood into stablecoins could mark a turning point and usher in a breakout moment for alternative digital assets.

Bitcoin recently reached a record high of $123,236 before pulling back slightly. This surge coincided with a rally in the altcoin market. Analysts view this capital rotation as typical behavior within the cryptocurrency ecosystem.

Last week, the total market capitalization of altcoins, excluding Bitcoin, surpassed $1.5 trillion. Analysts say if this level holds, it could set the stage for a broader, sustained rally across the altcoin market.

These expectations are fueled by a surge of stablecoin inflows into centralized exchanges, a development that is widely seen as a prelude to altcoin accumulation. Over the past week, Binance and HTX received $895 million and $819 million in stablecoins, respectively, which is a strong indicator of growing market liquidity, according to experts.

Over the past four weeks, the market capitalization of altcoins has jumped by more than 46%, reaching $1.5 trillion, a level not seen since January 2025. Despite the recent pullback, crypto analysts remain optimistic, suggesting that altcoins may retain their bullish momentum. In this scenario, a renewed push toward the December 2024 peak of $1.64 trillion is possible.

A breakout above this level would pave the way for fresh highs. For context, the previous all-time high in the altcoin market cap stood at $1.71 trillion. Experts believe that if this mark is breached, it could trigger the most significant altcoin rally yet.