Altcoin

Altseason can no longer rely on Bitcoin (BTC) capital rotation, says CryptoQuant CEO – here’s why

Published

11 months ago

December 3, 2024

The CEO of blockchain intelligence platform CryptoQuant says a structural shift in Bitcoin (BTC) accumulation is the wrongdoer behind a delayed altseason.

On-chain analyst Ki Younger Ju tells In line with his 379,400 followers on the social media platform

In line with CryptoQuant’s director, altcoins now have to provide you with a compelling use case as a result of they will now not depend on Bitcoin’s momentum to see greater costs.

“In comparison with the earlier cycle, the character of capital flowing into Bitcoin has modified. The present Bitcoin rally is especially pushed by demand from institutional traders and spot ETFs (trade traded funds).

In contrast to customers of crypto exchanges, institutional traders and ETF patrons are usually not seeking to swap their belongings from Bitcoin to altcoins. Moreover, asset rotation turns into inherently much less possible as they function exterior of crypto exchanges.

Altcoins ought to deal with growing impartial methods to draw new capital moderately than counting on Bitcoin’s momentum.”

Ki Younger Ju too notes that the latest explosion within the quantity of some altcoins is because of an increase within the liquidity of dollar-pegged crypto belongings.

“Altseason is now not outlined by Bitcoin asset rotation.

The rise in altcoin buying and selling quantity is just not pushed by BTC pairs, however by stablecoin and fiat pairs, which displays actual market progress moderately than asset rotation.

Stablecoin liquidity higher explains altcoin markets.”

The analyst goes on to say that whereas he’s optimistic about altcoins, he thinks that the rising tide is not going to elevate all boats.

READ Mantra: assessment of the impact of $ 2.17 million whale dump on the price of OM

“Do not get me fallacious, I’m optimistic about altcoins. I am simply declaring that solely a choose few are elevating new capital. Altcoin season is coming, however will probably be for just a few folks. Not each altcoin will ever attain its earlier all-time excessive.”

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