Ki Young Ju, the founder and CEO of CryptoQuant, recently shared his thoughts on the delayed altcoin season, asserting that for altcoins to experience significant growth, a fresh wave of retail capital will be necessary.
Ju explained that institutional investors, whose capital is tied up in exchange-traded funds (ETFs), are unlikely to divert their gains from major cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) into altcoins. This trend limits the liquidity needed to push altcoins to new all-time highs. As Ju pointed out, the altcoin market capitalization remains below its previous ATH, signaling that the influx of new liquidity from retail traders is still insufficient.
For altcoins to thrive, Ju suggested they need to adopt independent strategies to attract fresh capital, rather than relying solely on Bitcoin’s momentum. Despite this, he clarified that his overall outlook on altcoins remains positive.
Reigniting Retail Fear of Missing Out
Ju emphasized that reigniting the retail fear of missing out (FOMO) is key to drawing in the new capital needed to fuel altcoin price surges, especially for those with smaller market caps. Without this retail-driven push, altcoins are likely to struggle in gaining the necessary liquidity for substantial growth.
Willy Woo, a well-known trader, echoed similar sentiments in October 2024, suggesting that each successive altcoin season will be weaker than the last. He noted that while smaller altcoins may experience occasional surges after Bitcoin rallies, these altcoin seasons will generally diminish in strength with each cycle. Woo compared this trend to what’s seen in traditional equities markets, explaining that while mid- and low-cap altcoins will still see some price movements, the intensity of these rallies will decline after the massive altcoin bubble of 2017.
Several market indicators suggest that retail traders are already beginning to feel the FOMO, signaling that a new altcoin season could be on the horizon. For example, the open interest in Ethereum futures hit a new high on November 27, reflecting growing market interest and a potential rally in Ethereum that could spill over into other altcoins.
In addition, retail investors have been increasingly purchasing shares of MicroStrategy, a company known for its significant Bitcoin holdings. Over the past week, retail traders have bought around $100 million worth of MicroStrategy stock, viewing it as a leveraged bet on Bitcoin’s future price movements.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
