The cryptocurrency market is bustling with debate over delays in the Altcoin season. Bitcoin has surged due to institutional interest and demand for Spot ETFs (exchange sales funds), but the Altcoin market remains relatively restrained.
Analysts and industry insiders analyse the factors behind this phenomenon and uncover the technical interactions of capital flows, investor behavior and market events.
A fork of opinion on the delayed altcoin season
Cryptoquant CEO Ki Young Ju argues that current Bitcoin (BTC) gatherings are significantly different from previous cycles. In a detailed thread on X (formerly Twitter), he explained that the nature of capital flowing through Bitcoin has changed. Institutional investors and SPOT ETFs are driving the growth of Bitcoin, not retailing on crypto exchanges.
“These institutional investors and ETF buyers are not going to spin their assets from Bitcoin to altcoin,” says Ki Young Ju.
He emphasized that these players operate outside of crypto exchanges and that assets can be rotated viable. Furthermore, smaller altcoins rely heavily on exchange users for liquidity that is lacking in this cycle.
Cryptoquant CEO suggested that fresh capital must flow into Altcoins’ crypto exchange, reaching a new all-time high. This is not yet clear. Institutional funding may challenge major altcoins, but smaller funding depends on retailers.
Ki Young Ju concluded that instead of riding the momentum of Bitcoin, Altcoins need an independent strategy to attract a fresh capital. Despite this careful outlook, he remains optimistic.
“Alt Season will come, but it will be selective. Not all Altcoin will hit previous ATHs,” he added.
Not everyone agrees to an encryption CEO analysis. Cryptovizart, a senior analyst and researcher at GlassNode, believes Altseason has already begun. He highlighted Solana’s explosive growth at active addresses. This is currently 18.6 million cases per day, 40 times more than Ethereum.
“We’ve already chosen a place to gamble during this cycle,” Cryptovizart said.
Researchers pointed out the popularity of the project based on Memecoin and Solana as evidence of the ongoing alto season. However, Ki Young Ju was partially consistent with this view.
“The alto season started for some major altcoins, but not for other majors,” Cryptocant Executive said.
Other analysts like Crypto Feras take a more historical perspective. In their view, the alto season traditionally occurs in the later stages of the Bitcoin cycle.
“In 2020, the altcoin was crushed during Bitcoin’s glorious run in H2, but later met,” Ferras said.
They argue that today’s vast numbers of altcoins have diluted capital inflows and that the current cycle’s alto season is less influenced than its previous ones.
Market Cycle Psychology
Another prominent community member, Xforceglobal, provided subtle criticism of Ki Young Ju’s argument, highlighting the role and indicators of control in understanding market behavior.
“It is impossible to measure the allocation of institutions and exchange users. The market acts as a self-fulfilling prophecy,” they said.
They pointed out that the alto season often delays Bitcoin rallies.
“Altcoins are always delayed, but once the money flows in line, the alto season is inevitable,” concluded Xforceglobal.
In addition to the debate, indicators such as Ethereum and Bitcoin (ETH/BTC) ratio, which hit historic lows, suggest the potential for market changes. Similarly, beincrypto also reports on altcoins that are ready for growth, supported by growth and key technical indicators.
However, Altcoin’s total market capitalization remains the highest ever, reflecting Ki Young Ju’s concerns about the lack of fresh liquidity from Exchange users.
The consensus among analysts is that the Altcoin season will arrive, but its size and scope remain uncertain. Institutional interest in Bitcoin has restructured the market and reduced direct ripples to altcoins. Retail participation, essential to small altcoins, has shifted its focus to niche sectors such as Memecoin and Solana.
Ultimately, Altcoins must innovate to attract new capital independently. Through unique use cases, partnerships, or technology breakthroughs, the path to advance requires more than relying on Bitcoin’s momentum.
As Ki Young Ju appropriately summed up, “The future growth of Bitcoin is tied to ETFs, institutions and governments, not retailers. Altcoins must adapt to this new reality to thrive. Not there.”
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