The seasonal changes in the Crypto Assets market have always been a focus for investors. When it comes to the so-called "altcoin season", there are several key indicators worth our close attention:

First of all, the stability of Bitcoin is crucial. Only when the volatility of Bitcoin drops below 20% and its market dominance remains between 55% and 60% will investors have the confidence to move funds from Bitcoin to other Crypto Assets. Recently, if Bitcoin can maintain stability between $110,000 and $115,000, this will be a positive signal.

Secondly, substantial changes in capital flow are also an important indicator. We need to follow the changes in stablecoin reserves, especially the continuous growth of USDT and USDC balances on exchanges. At the same time, if the number of altcoin wallet addresses increases by more than 15% week-on-week within a few weeks, it indicates that retail and medium-sized investors are entering the market. The recent rebound in the number of transfers on the Ethereum network may be a sign of market warming up.

Furthermore, the market needs a leading trend sector or project. Looking back at previous years, 2021 was the year of the explosion of decentralized finance (DeFi), while 2023 is the rise of Layer2 scaling solutions. Looking ahead, it could be the prosperity of the Layer2 ecosystem after the Ethereum Cancun upgrade, or a revolutionary application emerging on a public chain, all of which could become the narrative focus for attracting funds.

Finally, the warming of market sentiment is also an important factor that cannot be ignored. When the Fear and Greed Index breaks 70 and enters the greed zone, and the discussion volume about alts on social media increases by more than 50% week-on-week, small-cap Crypto Assets may have their opportunity to perform. Although the current market sentiment has not yet reached this level, some positive signs have already emerged.

As these indicators change, investors should remain vigilant, closely follow market trends, and keep in mind the risks of investing, participating in the market rationally.