28 Nov 2024

Why is altcoin season delayed?

Here's the view by Ki Young Ju on X: "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 buyers have no intention of rotating their assets from Bitcoin to altcoins. Moreover, as they operate outside of crypto exchanges, asset rotation becomes inherently less feasible. While institutional investors might allocate funds to major altcoins via ETFs or investment vehicles, minor altcoins still rely on crypto exchange users to buy them. For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges. The altcoin market cap below its previous ATH indicates reduced fresh liquidity from new exchange users. If Bitcoin retail FOMO reignites, exchange user activity might increase, potentially setting the stage for an altcoin season. However, Bitcoin's future growth is expected to come from ETFs, institutions, and maybe govts, rather than retail traders on crypto exchanges".

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