As the cryptocurrency market enters a new bull market, funds are overflowing from Bitcoin to other competing coins. CryptoQuant CEO Ki Young Ju believes that the obvious trend of funds flowing from Bitcoin to altcoins is no longer seen. Ultimately, many altcoins may decline due to a lack of new funds entering. He points out that this round of altcoin season will be different from previous ones, with only a few assets achieving significant returns.
Even though market sentiment is quite positive, the lack of new funds entering altcoins may limit the price growth of most altcoins. He believes that Bitcoin is gradually separating from the crypto ecosystem and shifting towards a development model based on ETFs and stocks, which means that the inflow of traditional institutions like ETFs has a more pronounced impact on Bitcoin's price fluctuations, making it difficult for funds to effectively flow from Bitcoin to altcoins.
However, the gains of altcoins come more from stablecoin and fiat trading pairs rather than their correlation with Bitcoin. Unlike Bitcoin, which can directly receive inflows from traditional financial markets, competing coins are still trapped in a smaller crypto market and cannot achieve significant capital inflows. This also reflects the structural changes in the current market model. However, the top twenty competing coins have still shown decent returns recently, confirming the altcoin season we previously mentioned. Nonetheless, it is undeniable that this capital overflow effect may weaken in the future.
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"MICA Daily｜CryptoQuant CEO believes that the returns of competing coins may not meet expectations" was first published on (Block客).