The post Why Altcoin Season Is Delayed: Insights from CryptoQuant Founder appeared on BitcoinEthereumNews.com.

Bitcoin’s dominance persists as institutional investors drive demand, delaying a potential altcoin season. Altcoins need fresh capital and independent strategies to compete as Bitcoin’s institutional trajectory reshapes the market. The cryptocurrency market is going through a peculiar moment in which Bitcoin’s dominance endures, delaying the much-anticipated altcoin season (altseason). Ki Young Ju, the founder and CEO of CryptoQuant, offered analysis of this phenomenon stressing changes in industry capital flow patterns. Unlike past cycles when retail traders predominated, institutional investors and spot ETFs significantly drive the current Bitcoin surge. Why is altcoin season delayed? Compared to the last cycle, the nature of capital flowing into #Bitcoin has shifted. The current Bitcoin rally is primarily driven by demand from institutional investors and spot ETFs. Unlike crypto exchange users, institutional investors and ETF… pic.twitter.com/dpDBCF0BTo — Ki Young Ju (@ki_young_ju) November 27, 2024 Institutional Influence and the Need for Altcoin Independence  Ki Young Ju claims that typically institutional investors and ETF buyers do not rotate their holdings from Bitcoin to altcoins. This is so because asset rotation is less practical given their activities mostly outside of crypto exchanges. He further clarified that although big cryptocurrencies may attract institutional interest via ETFs or other investment platforms, small altcoins depend on crypto exchange users to generate their market activity. Currently below its all-time high, the altcoin market cap indicates the dearth of fresh liquidity coming from new exchange users. Put another way, “For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges.” Ki Young Ju underlines that ETFs, institutions, and maybe even governments—not retail traders—are the main drivers of Bitcoin’s development, even if its retail FOMO could be encouraging exchange user activity. He also advised altcoin startups to concentrate on developing autonomous ways to…

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Filed under: News - @ November 29, 2024 2:26 pm