Bitcoin surged close to $100,000, hitting a new high of $99,645, sparking speculation about an imminent altcoin season. Altcoins are cryptocurrencies other than Bitcoin that typically rise significantly in value during such seasons. However, analyst Ki Young Ju believes that the delay in the altcoin season is due to the current influx of institutional investors and spot ETFs into the market, unlike retail-driven capital flows in previous cycles.
In his analysis, Young Ju pointed out that institutional investors, ETF buyers, and crypto exchange users are not interested in moving their assets from Bitcoin to altcoins. This lack of rotation of assets is hindering the potential for altcoins to reach new all-time high market capitalization. Fresh liquidity from new exchange users is also limited, further impacting the altcoin market.
Young Ju suggested that for an altcoin season to occur, there needs to be a significant influx of fresh capital into crypto exchanges. While a resurgence of Bitcoin retail FOMO could increase exchange activity and potentially lay the groundwork for an altcoin season, the future growth of Bitcoin is expected to come from institutions, governments, and ETFs rather than retail traders.
The CryptoQuant CEO believes that altcoins should focus on developing their own strategies to attract new capital instead of solely relying on Bitcoin’s momentum. He emphasized that while he is bullish on altcoins, he predicts that only a select few coins will be able to attract fresh capital during the upcoming altcoin season. Not every altcoin may reach its previous all-time high, indicating that the altseason will be limited to a few coins.
In conclusion, the delay in the altcoin season can be attributed to the current dominance of institutional investors and spot ETFs in the market, as well as the lack of rotation of assets from Bitcoin to altcoins. Altcoins will need a significant influx of fresh capital to reach new all-time high market capitalization and fuel an altcoin season. While Bitcoin’s future growth is expected to come from institutions and governments, altcoins should focus on creating their own strategies to attract new capital and prepare for the potential altcoin season ahead.
