The recent sluggish performance of the altcoin market has made many investors begin to wonder whether the "altcoin season" when the bull market breaks out like the one in 2021 will reappear in this bull market.
Isn’t copycat season coming again?
At present, many investors are not optimistic about the copycat season, mainly for the following reasons:
The core driving force of this Bitcoin bull market comes from spot ETFs. Even if policies are more conducive to corporate investment in Bitcoin in the future, a large amount of funds will still flow to Bitcoin. For retail investors, meme coins have attracted more funds to enter due to their significant wealth creation effect, rather than altcoins. Even though some popular coins such as Solana performed well on the meme currency track, they still failed to break through historical highs, showing that altcoins lacked momentum. In addition, the market value of many altcoins is highly concentrated in institutional and venture capital funds. Ordinary investors have gradually stayed away from these markets after repeated setbacks. Competition for altcoins is fierce, and funds are further dispersed.
Many believe that this bull run will primarily belong to Bitcoin and meme coins, and that the alt season may be absent.
Perhaps the altcoin season will still come, and some investors still have hope for the prospects of altcoins. They believe that the altcoin season is usually the result of capital overflow. Similar to past bull market cycles, Bitcoin will be the first to reach a record high and its market share will increase. Then funds will flow from Bitcoin to the altcoin market dominated by ETH, driving ETH to make up for the increase. And drove other altcoins to rise.
The project team behind the altcoin will cooperate with market makers to push up the price at the peak of the bull market, stimulate market sentiment, and attract speculative funds to enter. However, the lack of actual value of meme coins may lead to the bubble bursting. Instead, altcoins with application scenarios have regained market attention, such as DeFi projects, which can bring actual benefits to users. Considering that the total market capitalization of the cryptocurrency market is still small relative to that of U.S. stocks, more risk funds may flow into the cryptocurrency market in the context of a bubble in the U.S. stock market. Although altcoins are less volatile, they are still attractive.
It seems that although the market is divided on the arrival of the copycat season, how the market evolves in the future still requires continued attention.
Maybe we need another round of stimulus
