Is Altcoin Season Here? Analysts Share Key Insights
The cryptocurrency market is abuzz with talk about the delayed arrival of altcoin season. While Bitcoin has soared due to institutional interest and spot ETF (exchange-traded fund) demand, the altcoin market remains relatively sluggish.
Analysts and industry insiders are dissecting the factors behind this phenomenon, revealing the technical interplay between capital flows, investor behavior and market events.
Different Opinions on Altcoin Season Delay
CryptoQuant CEO Ki Young Ju believes that the current Bitcoin (Bitcoin) rebound is very different from previous cycles. In a detailed post on X (formerly Twitter), he explained that the nature of capital flowing into Bitcoin has changed. Institutional Investors and Spot ETFs Driving Bitcoin’s growth now are retail traders on cryptocurrency exchanges.
“These institutional investors and ETF buyers have no intention of switching assets from Bitcoin to altcoins,” Ki Young Ju point out.
He emphasized that these players operate outside of cryptocurrency exchanges, making asset rotation less feasible. Additionally, smaller altcoins rely heavily on liquidity from exchange users, which has been lacking this cycle.
CryptoQuant CEO says new capital must flow into cryptocurrency exchanges in exchange for altcoins to reach all-time highs — a trend that’s not yet evident. While institutional funds may have exposure to major altcoins, minor altcoins still rely on retail traders.
Ki Young Ju concluded that altcoins need independent strategies to attract new capital, rather than ride on Bitcoin’s momentum. Despite the cautious outlook, he remains optimistic.
“Alt season will come, but it will be selective. Not all altcoins will reach their previous ATH,” he added.
Not everyone agrees with the CryptoQuant CEO’s analysis. CryptoVizArt, senior analyst and researcher at Glassnode, believes that the alternative season has begun. He highlighted the explosive growth of Solana’s active addresses, which currently stands at 18.6 million daily active addresses, almost 40 times that of Ethereum.
“Retail has chosen where to gamble in this cycle,” CryptoVizArt famous.
The researchers pointed out that Meme Coin and Solana-based projects as evidence that altcoins are underway. However, Ki Young-joo partially agrees with this view.
“The alt season has started for some major altcoins, but not yet for others,” CryptoQuant executives said. famous.
Other analysts, such as Crypto Feras, take a more historical perspective. In their view, alt season traditionally occurs late in the Bitcoin cycle.
“In 2020, altcoins took a hit amid Bitcoin’s stellar second half, but then rebounded,” Feras said point out.
They believe that the sheer number of altcoins today dilutes capital inflows, making the current cycle’s altcoin season less influential than previous altcoin seasons.
market cycle psychology
Another prominent community member, XForceGlobal, offered a nuanced critique of Ki Young Ju’s arguments, emphasizing the role of psychology and leading indicators in understanding market behavior.
“Measuring the allocation of institutions versus exchange users is impossible. The market operates like a self-fulfilling prophecy,” they explain.
They noted that altcoin season tends to lag Bitcoin’s rise, with confidence in Bitcoin typically translating into altcoin growth.
XForceGlobal concluded: “Altcoins always lag, but once money flows align, altcoin season is inevitable.”
Adding to the discussion are projects such as Ethereum to Bitcoin (Ethereum/Bitcoin) ratio hitting an all-time low suggests a possible shift in the market. Likewise, BeInCrypto also reported Altcoins poised for growthsupported by rising sentiment and key technical indicators.
However, total altcoin market capitalization remains below all-time highs, echoing Ki Young Ju’s concerns about a lack of new liquidity for exchange users.
Analysts agree that altcoin season is coming, but its size and scope remain uncertain. Institutional interest in Bitcoin has reshaped the market, reducing direct spillovers to altcoins. Retail participation, crucial for smaller altcoins, has shifted focus towards memecoins and Solana.
Ultimately, altcoins must innovate to attract new capital on their own. Whether through unique use cases, partnershipor technological breakthrough, the path forward will require more than just reliance on Bitcoin for motivation.
As Ki Young Ju aptly summed it up: “Bitcoin’s future growth has more to do with ETFs, institutions, and governments than retail traders. Altcoins must adapt to this new reality in order to thrive.”
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