CryptoQuant founder and CEO Joo Ki-Young Ju recently argued that a fresh infusion of capital from retail traders will be needed for the start of altcoin season, which is usually a period of rapid rise in altcoin prices following a Bitcoin (BTC) bull market.
Quantitative analysts say institutional money is already tied up in exchange-traded funds, and institutional investors who indirectly own cryptocurrencies through investment vehicles are unlikely to shift profits from blue-chip assets like BTC or Ethereum (ETH) to altcoins. I wrote it. The Lord wrote:
“For an altcoin to reach an all-time high market cap, there would need to be significant inflow of new capital into cryptocurrency exchanges. An altcoin market cap below its previous ATH indicates a decrease in new liquidity from new exchange users.”
The analyst still made clear his “bullish” stance on altcoins, concluding that “altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum.”
Bitcoin market cap vs altcoin market cap. source: Youngju Ki
relevant: The current Bitcoin price cap is expected to be $135,000 — Youngju Ki
Rekindling retailers’ fears of missing out
The CryptoQuant CEO wrote that reigniting retailers’ fear of missing out (FOMO) is key to attracting new capital that will boost altcoin prices, especially those with smaller market caps.
In October 2024, celebrity trader Willy Woo said that Altcoin season will weaken with each market cycle. The trader told his followers on social media:
“There will be an echo fractal of mid-caps and low-caps pumping after the BTC pump as investors seek higher returns on the risk curve. This is a normal part of the market and can be seen in equities as well. There will only be a weak alt season in 2017. “Each cycle begins after the great replacement bubble.”
Some indicators may be signaling that retail traders are already catching FOMO. Open interest on the Ethereum futures market hit a new high on November 27. This signals a potential bull market for smart contract assets as market interest grows and could spread to other cryptocurrencies.
Retail investors also bought about $100 million worth of MicroStrategy stock over the past seven days. The stock has become the most popular stock among traders, especially retail traders who see MicroStrategy as a leveraged Bitcoin bet.
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