CryptoQuant CEO Analyzes Why the Altcoin Season Is Late
November 28, 2024
The cryptocurrency market is abuzz with talk about the delayed start of the altcoin season. While Bitcoin has surged on institutional interest and demand for spot exchange-traded funds (ETFs), the altcoin market remains relatively quiet.
Analysts and industry insiders dissect the factors behind this phenomenon, revealing a technical interaction of capital flows, investor behavior, and market events.
Mixed opinions on the delay of the altcoin season
Ki Young Joo, CEO of CryptoQuant, argues that the current Bitcoin (BTC) rally is significantly different from previous cycles. In a detailed thread on X (formerly known as Twitter), he explained that the nature of capital flowing into Bitcoin has changed. Institutional investors and spot ETFs are now driving Bitcoin’s growth rather than individual traders on cryptocurrency exchanges.
“These institutional investors and ETF buyers have no intention of shifting their assets from Bitcoin to altcoins,” Ki Young-joo said.
He stressed that these players operate outside of cryptocurrency platforms, making asset rotation less feasible. Furthermore, smaller altcoins rely heavily on platform users for liquidity, which was missing in this cycle.
The CryptoQuant CEO suggested that new capital would need to flow into cryptocurrency platforms for altcoins to reach all-time highs — a trend that has yet to materialize. While institutional money may be flowing into major altcoins, smaller coins remain reliant on retail traders.
Ki Young-joo concluded that altcoins need independent strategies to attract new capital rather than relying on Bitcoin’s momentum. Despite this cautious outlook, he remains optimistic.
“Altcoin season will come, but it will be selective. Not every altcoin will reach its previous highs,” he added.
Not everyone agrees with the CryptoQuant CEO’s analysis. CryptoVizArt, a senior analyst and researcher at GlassNode, believes that the altcoin season has already begun. He points to the massive growth in Solana’s active addresses, which now number 18.6 million per day — nearly 40X that of Ethereum.
“Individuals have already chosen where to venture in this cycle,” Cryptovisart noted.
The researcher pointed to the popularity of meme coins and Solana-based projects as evidence of the progress of the altcoin season. However, Ki Young-joo partially agrees with this view.
Other analysts, such as Crypto Fras, take a more historical perspective. In their view, the altcoin season traditionally occurs in the latter stages of the Bitcoin cycle.
They argue that the sheer number of altcoins today is diluting capital flows, making the current cycle's altcoin season less impactful than previous cycles.
“Altcoins will always lag behind, but once the money flow aligns, altcoin season is inevitable,” XForceGlobal concluded.
Adding to the debate, indicators such as the Ethereum to Bitcoin (ETH/BTC) ratio hitting all-time lows point to a potential market reversal. Similarly, BeInCrypto also reported that altcoins are poised for growth, supported by rising sentiment and key technical indicators.
The consensus among analysts is that altcoin season is coming, but its scope and extent remain uncertain. Institutional interest in Bitcoin has reshaped the market, reducing direct flows into altcoins. The focus of individual participation, essential for smaller altcoins, has shifted to niche sectors such as meme coins and Solana.
Ultimately, altcoins must innovate to attract new capital on their own. Whether through unique use cases, partnerships, or technological breakthroughs, the path forward requires more than relying on Bitcoin’s momentum.
As Ki Young Joo aptly summed up, “Bitcoin’s future growth is tied to ETFs, institutions, and governments—not individual traders. Altcoins must adapt to this new reality to thrive.”