Bitcoin’s Rise Reshapes Market, Leaving Altcoins Waiting for Independent Growth
The cryptocurrency market is currently grappling with a delay in the expected altcoin season.
While Bitcoin’s surge is being fueled by institutional investment and growing demand for spot ETFs, altcoins have remained subdued.
Ki Young Ju, CEO of CryptoQuant, highlighted that this Bitcoin rally is largely driven by institutional players and spot ETFs, rather than retail traders. He explained that institutional investors have no plans to move capital into altcoins, as they operate outside of crypto exchanges, making asset rotation difficult. For altcoins to see new highs, fresh capital must flow into exchanges, which hasn’t happened yet. He believes altcoins need independent strategies to attract investment, though he remains optimistic that an altcoin season will eventually emerge, but more selectively.
On the other hand, CryptoVizArt from Glassnode contends that altcoin season has already started, citing Solana’s surge in active addresses and retail traders focusing on meme coins and Solana-based projects. Some analysts like Crypto Feras take a historical view, noting that altcoin growth typically follows Bitcoin’s rally later in the cycle.
READ MORE: Tether to Discontinue Euro-Pegged Stablecoin, Focus Shifts to MiCA-Compliant Projects
XForceGlobal emphasized the psychological factors in market behavior, suggesting that altcoins will eventually see growth once capital shifts their way. Indicators like the ETH/BTC ratio and rising sentiment support the idea that altcoins are poised for growth, although the total altcoin market cap remains below previous highs.
The general consensus is that while altcoin season will arrive, its scale is uncertain. Bitcoin’s rise has reshaped the market, reducing the spillover effect to altcoins, which now require distinct strategies to attract new capital. As Ki Young Ju put it, altcoins must adapt to thrive in a market driven by institutions and ETFs.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
