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.