The inflow of alts has surged to an 8-month high. Is the risk of dumping imminent or is this a precursor to a bull run?

According to the latest data from CryptoQuant, the inflow of alts to major CEX exchanges has surged to an 8-month high, indicating a significant increase in trading activity. Although the altcoin season index is only at 35 and has not officially entered the "altcoin season," analysts have differing views on the future market: some warn that this may signal increased dumping pressure, while others believe that a bull run for alts is imminent. This article will delve into the market signals, exchange dynamics, and expert opinions behind the surge in altcoin inflows, helping you grasp the latest risks and opportunities.

Main CEX altcoin inflows hit new highs, trading activity surges sharply

CryptoQuant data shows that the inflow volume of major CEX alts, the number of related addresses, and the number of transactions have all reached the highest levels since the end of 2024. The number of transactions in the past 7 days has exceeded 45,000, reflecting a significant increase in the activity of market participants. Analysts point out that this phenomenon often occurs after Bitcoin's price consolidates, and recently BTC broke through 112,000 USD, attracting more funds to flow into the altcoin market.

Is the surge in inflow a warning for dumping or a capital allocation?

Despite the significant increase in trading activity, some analysts believe that the inflow of alts into exchanges usually indicates heightened selling pressure. Users transferring assets to exchanges often do so to cash out or exchange for stablecoins, which may signal that alt prices face downside risks in the short term. However, there is also a viewpoint that the surge in inflow might not necessarily be entirely bearish, as some funds could be preparing for a new round of market activity.

Altcoin season index is sluggish, market divergence intensifies

The Altcoin Season Index is currently only at 35, far from the standard for altcoin season (75% of coins outperforming Bitcoin within 90 days). Some analysts believe that the altcoin boom season has ended, with only a few popular coins standing out while most projects are languishing. This phenomenon is similar to the U.S. small-cap stock market, exhibiting characteristics of high risk and high return in investment.

Some analysts are optimistic about the upcoming altcoin season

Despite the ongoing pessimistic voices, some analysts believe that the alts season is brewing. As BTC's dominance peaks and the momentum of ETH, meme coins, and DeFi tokens strengthens, the market is expected to enter a new accumulation phase. Some experts predict that September could be a key moment for the alts market to explode, and investors should closely monitor changes in market momentum.

Conclusion

The inflow of alts has surged to an 8-month high, with market sentiment and risks coexisting. Is this a warning of selling pressure or a precursor to a bull run? Investors need to be vigilant about short-term fluctuations while paying attention to the momentum of mainstream coins and changes in market structure to seize potential opportunities and risks.