Altcoin Season
Will Be Very Different in futures??
BTC (and a few altcoins) may soon return to their old highs, but this will not happen for most altcoins, at least in the short term. Many people may have been disappointed when the market corrected sharply in the past 4 months. In our opinion, there are 3 reasons why this altcoin season will change:
1/ Large investment organizations are only interested in Bitcoin and Ethereum. Through Spot ETFs, Bitcoin and Ethereum have attracted huge cash flows from TradFi, traditional organizations and investment funds with a total asset value of up to hundreds of billions of USD will demonstrate their influence and gradually dominate the crypto market.
2/ Are VCs being questioned? The market still pays attention to VC investments, but VCs overvaluing altcoins causes token prices to decline rapidly after the listing stage. Therefore, VCs should no longer be considered the main metric to evaluate a Crypto project.
3/ There are too many altcoins being issued. The market does not have enough cash flow and liquidity to push the price of all altcoins at the same time. Too many tokens being issued dilute the little liquidity in the crypto market to too many altcoins, so the price of altcoins is unlikely to grow sustainably.