CoinVoice recently learned that CryptoQuant CEO Ki Young Ju posted on platform X, analyzing the reasons why the altcoin season has been delayed. He pointed out that compared to the last bull market, the current rise of Bitcoin is mainly driven by institutional investors and spot ETF demand, which are different from users on cryptocurrency exchanges and have no intention of shifting assets from Bitcoin to altcoins.
Ki Young Ju stated that as institutional investors mainly operate outside of exchanges, asset rotation has become less likely. While institutions may allocate mainstream altcoins through investment tools like ETFs, small-cap altcoins still rely on retail users on exchanges. For the total market capitalization of altcoins to reach new highs, a significant influx of new funds into exchanges is required, but the current levels below historical highs indicate a decrease in liquidity brought by new users.
He believes that the future growth of Bitcoin will mainly come from ETFs, institutions, and even governments, rather than retail investors on exchanges. Therefore, altcoin projects should focus on developing independent strategies to attract new funds, rather than relying on the momentum brought by Bitcoin. [Original link]