CryptoQuant CEO: Altcoins Face a Tough Road Ahead Without Fresh Capital Influx

Key Takeaways

• CryptoQuant CEO Ki Young Ju has warned that altcoins need fresh capital to reach new all-time highs.
• The famed crypto analyst said altcoins need to focus on developing independent strategies and stop relying on Bitcoin’s momentum.
• Ju said he remains bullish on altcoins.

CryptoQuant CEO Ki Young Ju has claimed that altcoins will have a tough time reaching new all-time highs without an influx of new capital that is different from what is flowing into Bitcoin.

Ju believes altcoins need to move away from relying on Bitcoin’s momentum and develop new “independent strategies” if they want to thrive.

Altcoin Season Delayed

On Nov. 27, Ju wrote on X that the nature of capital flowing into Bitcoin has shifted this cycle, with it currently driven by demand from institutional investors and spot ETFs.

This, Ju explains, is why Altcoin season has been delayed.

“Unlike crypto exchange users, institutional investors and ETF buyers have no intention of rotating their assets from Bitcoin to altcoins.”

“Moreover, as they operate outside of crypto exchanges, asset rotation becomes inherently less feasible.”

Although some institutional investors might buy major altcoins via ETFs , Ju said that minor altcoins still rely on crypto exchange users to buy them.

This difference in capital is what is preventing the usual breakout of altcoins, according to Ju.

Altcoins Need Fresh Capital

For altcoins to reach a new all-time high market capitalization, Ju believes “a significant influx of fresh capital to crypto exchanges” is needed.

But as of right now, the altcoin market cap is sitting below its previous best, highlighting the lack of new users.

Ju notes that if Bitcoin continues to grow strong, there could be an influx of exchange users as retail investors worry they’re missing out.

“However, Bitcoin’s future growth is expected to come from ETFs, institutions, and maybe govts, rather than retail traders on crypto exchanges.”

“Altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum,” he added.

The total cryptocurrency market capitalization stands at $3.25 trillion with Bitcoin accounting for $1.86 trillion.