Stablecoin Theme Surges… Altcoins Show Signs of Rebound Amid Cautious Outlook

US Stablecoin Regulation Bill Passes

Aptos, Sei, and Others See Sharp Gains

Altcoins Break Out of Prolonged Correction

Limited Optimism Amid Modest Capital Inflows

As tensions ease in the Middle East and discussions on stablecoin regulation within the United States gain traction, the virtual asset market is once again showing early signs of capital inflow. Market experts emphasize a cautious approach, noting that while some altcoins (cryptocurrencies other than Bitcoin) are displaying strength, the overall upward trend remains limited.

According to the virtual asset industry on the 1st, the recent US stablecoin regulation bill 'Genius Act' passed a Senate vote, leading to a broad surge among related project tokens. In particular, Aptos and Sei posted strong rallies after being selected as finalists for the pilot platform of the Wyoming state government stablecoin project (WYST).

As of the 27th, Sei was trading at 364₩ domestically, up 54% from the previous week. During the same period, Aptos also rose around 7%, hovering at around 6,688₩. At one point, Aptos soared close to 24% compared to its recent short-term low. Additionally, Sky (formerly MakerDAO), which issues its own stablecoin DAI, has gained about 10% over this month.

The domestic market has also seen the stablecoin theme expand, sending Kaia’s price sharply higher. Kaia has been coined as a key infrastructure that could be leveraged if Kakao affiliates enter the won-based stablecoin market. Over the past two weeks, Kaia has shown strong momentum, surging approximately 95%.

Some analysis suggests that the entire cryptocurrency market is displaying independent movements, detached from recent macroeconomic variables. Cryptocurrency analyst Willy Woo appeared on the Swissblock podcast, stating, "The current crypto market is not in a definitive downturn driven by global macro conditions, but is rather in an 'exploratory correction'—cooling off the previous speculative overheating and seeking balance through trader liquidation." He added, "Recently, Bitcoin’s medium-to-long-term liquidity indicators have weakened, with buy-side liquidity dropping notably compared to the early stages of this rally. However, on-chain data shows clear capital inflow into Ethereum. The key for this cycle may not be a solo rally by Bitcoin, but rather the structural strength of Ethereum."

Some believe that altcoins are showing potential to break free from their prolonged correction. Crypto strategist Michael van de Poppe recently assessed on his YouTube channel that "the overall cryptocurrency market capitalization continues to rise moderately, in contrast with macro-level uncertainty. This could indicate preparation for an additional rally." However, he cautioned, "There may be some periods of adjustment or sideways movement over the next 3–6 months, so investors should maintain flexible strategies to account for such risks."

Meanwhile, some analysts argue that significant capital inflow into the altcoin market will be difficult in the short term. Crypto analyst Benjamin Cowen said, "Until the Federal Reserve initiates rate cuts in earnest, risk assets as a whole are likely to remain structurally weak. Currently, Bitcoin dominance is close to this year’s peak at 66%, and altcoins are lagging behind Bitcoin in terms of capital inflow." Due to this recent concentration of market funds in Bitcoin, a cautious approach to altcoin investment is advised for the time being.

Minseung Kang, Bloomingbit Reporter minriver@bloomingbit.io