According to ChainCatcher, as reported by Cointelegraph, CryptoQuant founder and CEO Ki Young Ju recently stated that the altcoin season (a period when altcoin prices rise rapidly after a Bitcoin bull market) will require retail traders to inject new funds.
It pointed out that institutional funds have been tied up by ETFs, and institutional investors who own cryptocurrencies indirectly through investment tools are unlikely to transfer the profits of blue-chip assets like BTC or ETH to altcoins. Ju wrote: “For altcoins to reach a new all-time high market cap, a significant influx of new capital into cryptocurrency exchanges is required. The low market cap of altcoins compared to previous all-time highs indicates a decrease in liquidity from new exchange users.”
“Altcoins should focus on developing independent strategies to attract new capital, rather than relying on Bitcoin's momentum,” the analyst summarized, while clarifying that he still remains “bullish” on altcoins.