Originally published on: November 27, 2024
According to Ki Young Ju, the founder and CEO of CryptoQuant, the much-anticipated altcoin season is facing a delay due to the lack of new retail capital entering the market. Altcoin season typically follows a bull market in Bitcoin, with altcoin prices rapidly appreciating. However, Ju argues that in order for this trend to kick off, fresh capital injections from retail traders are needed.
Ju suggests that institutional money is currently tied up in exchange-traded funds and that institutional investors are unlikely to shift their gains from established assets like Bitcoin or Ether into altcoins. Therefore, altcoins must develop independent strategies to attract new capital rather than relying solely on Bitcoin’s momentum.
Reigniting retail FOMO (fear of missing out) is seen as crucial in attracting the fresh capital necessary to drive altcoin prices higher, especially for smaller market capitalization altcoins. Retail traders are showing signs of catching FOMO, with indicators such as increased open interest in the Ether futures market and significant investments in companies like MicroStrategy, which is seen as a leveraged bet on Bitcoin.
It’s clear that retail investor interest will play a key role in determining the start of altcoin season. By developing unique strategies and appealing to retail traders, altcoins may find the momentum they need to break out and soar in value. Stay tuned for more insights and updates on the cryptocurrency market to spot new investment opportunities and refine your trading strategies.