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Altcoin season is delayed, and Ki Young Ju, a well-known crypto analyst, explains why. While he remains bullish on altcoins, he points out that only a few are attracting fresh capital. The current Bitcoin rally is largely driven by institutional demand and spot ETFs, which isn’t leading to a rotation of capital into altcoins like in previous cycles. In the meanwhile, the Altcoin Season Index is at 41, meaning the rally is not ready to take off.
Let’s see what’s dropping the bullish momentum.
Why Altcoins Are Struggling?
The main reason for the delay is Bitcoin. Right now, Bitcoin’s surge is driven by institutional investors and the growing interest in Bitcoin ETFs. Unlike regular crypto traders, these institutional players aren’t rotating their assets from Bitcoin into altcoins.
They’re mainly sticking with Bitcoin, and because they trade outside of exchanges, there’s less chance for the typical flow of money from Bitcoin to altcoins. This shift in capital flow is what’s holding altcoins back from a big breakout. Keeping this current scenario in mind the analyst says he is bullish on altcoins but not every altcoin will see a breakout there will be few who can see a new ATH rest may take a nosedive.Â
The Need for Fresh Capital
For altcoins to hit new all-time highs, they need a solid influx of fresh capital into crypto exchanges. However, with the altcoin market cap still below previous records, it’s clear that new liquidity from everyday traders is lacking. Essentially, altcoins are waiting for more retail investors to jump in—but that’s not happening just yet.
If Bitcoin’s bull run keeps going strong and retail investors start fearing they’re missing out, we could see more action on crypto exchanges. This could ignite altcoin season, but it’s going to take some retail FOMO (fear of missing out) to get the ball rolling. Right now, though, Bitcoin’s growth is mainly driven by institutional money, not the retail crowd.
Altcoins Need Their Strategy
To take off, altcoins can’t just rely on Bitcoin’s momentum anymore. They need to create their buzz and find ways to attract new capital independent of Bitcoin. Whether it’s innovative tech, strong communities, or new use cases, altcoins have to carve out their own space if they want to thrive.
In short, the altcoin season isn’t over, but it’s delayed. Altcoins need fresh capital and more retail activity to catch up, and they can’t just sit around waiting for Bitcoin’s momentum to lift them.
