#山寨季何时到来？
Why has altcoin season been delayed?
The main reason for the delay is Bitcoin.
Currently, the surge in Bitcoin is driven by institutional investors and the growing interest in Bitcoin ETFs. Unlike ordinary cryptocurrency traders, these institutional investors do not shift funds from Bitcoin to altcoins.
Most of these investors tend to hold onto Bitcoin, and because many of their trades are conducted over-the-counter, the amount of funds flowing from Bitcoin to altcoins is lower than usual. This change in capital flow has prevented altcoins from experiencing the breakthroughs we typically see. Old Li remains optimistic about altcoins, but he believes that only a few altcoins will reach all-time highs while many others may see significant declines.
For altcoins to hit new highs, they need a continuous influx of new capital into cryptocurrency exchanges. Given that the market cap of altcoins is still below historical peaks, there is clearly a lack of new liquidity from everyday traders. In short, altcoins are waiting for more retail investors to join — but so far, that hasn't happened.
If the Bitcoin bull market continues to be strong, and retail investors start to worry about missing out on opportunities, we may see increased trading activity on cryptocurrency exchanges. This could help spark altcoin season, but it will take some retail FOMO (fear of missing out) to push things forward.
Currently, Bitcoin's growth is primarily driven by institutional funds rather than retail funds.
To thrive, altcoins cannot solely rely on Bitcoin's momentum. They need to create their own hype and find ways to attract new capital independently of Bitcoin. Whether through innovative technology, strong communities, or new use cases, altcoins must carve out their own space to succeed.
In short, the altcoin season is not over — it has just been delayed. Altcoins need new capital and more retail participation to catch up. When it does arrive, it could change the game.
If anyone feels confused by the market volatility and doesn't know how to deal with being trapped, or feels misled during the operation process, feel free to reach out!
I am Old Li.