Why Altcoin Season Is Behind Schedule

Bullish patterns in the crypto market follow a pattern, typically ignited by positive signals in Bitcoin (BTC) that spread over to the broader asset class.

Bullish patterns in the crypto market usually begin with positive signals in Bitcoin (BTC) that spread over to the broader asset class. However, this time around, altcoins have not kept pace during Bitcoin’s latest surge.

The lackluster trend has prompted industry-wide questions about what is driving the lag and in response, market experts are weighing in.

Why Altcoin Season Is Behind Schedule

CryptoQuant founder and CEO Ki Young Ju has offered insights into the ongoing underperformance of altcoins, identifying factors hindering the expected surge.

At the heart of the lag is a shift in capital flow into Bitcoin. Unlike past cycles, the current rally is fueled by institutional investors and spot ETFs rather than retail traders, who historically drove Bitcoin-to-altcoin money rotations. Institutions tend to hold Bitcoin long-term and operate outside traditional crypto exchanges, and the change in dynamics has disrupted the usual trickle-down effect where Bitcoin gains spark altcoin rallies.

Why is altcoin season delayed?Compared to the last cycle, the nature of capital flowing into #Bitcoin has shifted. The current Bitcoin rally is primarily driven by demand from institutional investors and spot ETFs.

Unlike crypto exchange users, institutional investors and ETF… pic.twitter.com/dpDBCF0BTo

According to Ju, while some major altcoins might catch the eye of institutions through ETFs and investment funds, the bulk of smaller altcoins still rely on exchange-driven activity. Without fresh retail interest, the much-anticipated altcoin season may remain elusive.

The analyst further highlighted the altcoin market’s liquidity issues, with market capitalization below previous highs, signaling reduced fresh capital inflows. Without fresh investments flowing in, these altcoins may struggle to regain momentum.

Despite the roadblocks, there’s room for optimism.

Hopes Remain for Altcoin Season Breakout

Ju believes that renewed retail excitement and a boost in exchange activity could reignite altcoins. The optimism is fueled by the expectation for the growing institutional interest in Bitcoin to widen to include altcoins, potentially sparking the long-awaited rally.

This echoes broader positive sentiment among other analysts. According to Rekt Capital, stability in BTC’s price within the $91,000 and $100,000 range, could create an opportunity for an Ethereum-led altcoin breakout.

Bitcoin ranging between $91,000 & $100,000 may very well be a recipe for Ethereum to take the lead and enable money flow into smaller Altcoins#BTC $ETH #Crypto pic.twitter.com/E5Il60sjzK

The latest take builds on Rekt’s previous analysis that Bitcoin’s uptrend could create a positive environment for altcoins to thrive. CryptoQuant’s Ju, however, emphasized that altcoins must focus on building independent strategies to attract new capital rather than relying solely on Bitcoin’s momentum.

On the Flipside

Why This Matters

A bullish crypto market is incomplete without an altcoin surge, making its delay a notable setback.

Read more about expectations for a surge in altcoins:Why Altcoin Season Is Next in Line Post Bitcoin-Breakout

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