Is Altcoin Season Here? Analysts share key insights.

The cryptocurrency market is buzzing with discussions about the delay of the altcoin season. Bitcoin has surged due to institutional interest and interest in spot ETFs (exchange-traded funds), while the altcoin market remains relatively subdued.

Analysts and industry insiders identify the reasons behind this phenomenon and show the technical interplay of capital flows, investor behavior and market events.

Different opinions on the delayed Altcoin period

CryptoQuant CEO Ki Young Ju argues that the current Bitcoin (BTC) rally is significantly different from previous cycles. In a detailed thread on X (formerly Twitter), he explained that the nature of capital flowing into Bitcoin has changed. Institutional investors and spot ETFs are now driving Bitcoin's growth rather than retail traders on crypto exchanges.

“These institutional investors and ETF buyers have no intention of diverting their assets from Bitcoin to altcoins,” said Ki Yang Ju.

These players emphasize that they operate outside of crypto exchanges, making asset rotation easier. Moreover, the lack of small altcoins in this cycle depends heavily on the users of the exchange.

The CEO of CryptoQuant has suggested that new capital should flow into altcoins to crypto exchanges to reach new all-time highs – a trend that has yet to be seen. While institutional funds can invest in major altcoins, the smaller ones are dependent on retail traders.

Ki Young Joo concluded that altcoins need free strategies to attract fresh capital rather than driving Bitcoin's momentum. Although this is a cautious view, it remains promising.

“Altseason will come, but it will be selective. Not every altcoin will hit its previous ATH,” he added.

Not everyone agrees with the CryptoQuant CEO's analysis. CryptoVizArt, senior analyst and researcher of Glassnode, believes that the altseason has already begun. He highlighted Solana's explosive growth in active addresses, which now number 18.6 million per day – nearly 40X that of Ethereum.

“Retail has already chosen where to gamble in this cycle,” CryptoVizArt explained.

The researcher points to the popularity of meme coins and Solana-based projects as evidence of the ongoing altseason. However, Ki Young Joo partially agrees with this view.

“Altseason has started for a few major altcoins, but not for others,” said a CryptoQuant executive.

Other analysts, such as Crypto Feras, take a more historical perspective. In their view, the altseason usually occurs in the final stages of the Bitcoin cycle.

“In 2020, altcoins were crushed by Bitcoin's glorious run in H2, only to rally later,” Feras said.

They argue that the current cycle will be less impactful than previous ones, as the number of altcoins today will slow down the flow of capital.

The psychology of market cycles

Another prominent community member, XForceGlobal, offered a critical critique of Ki Young Joon's argument, emphasizing the role of psychology and its dominance in understanding market behavior.

“It is not possible to measure institutional allocations against currency users. “The market moves like a self-fulfilling prophecy.”

He pointed out that the altseason often slows down Bitcoin's rally, which translates into altcoin growth with confidence in Bitcoin.

“Altcoins will always lag, but once cash flows settle, altseason is inevitable,” XForceGlobal concluded.

In the discussion, as the Ethereum-to-Bitcoin (ETH/BTC) ratio hit historic lows, indicators suggest that there may be a change in the market. Similarly, BeInCrypto also reports that altcoins are poised for growth, supported by sentiment and key technical indicators.

However, the overall altcoin market cap is below all-time highs, echoing the fresh liquidity crisis among users of the Ki Yang Jun currency.

The consensus among analysts is that the altcoin era is coming, but its size and scope are uncertain. Institutional interest in Bitcoin has shifted the market, reducing direct flows into altcoins. Retail participation, essential for smaller altcoins, has shifted focus to sectors with MiM Coins and Solana.

Ultimately, altcoins must be independently invented to attract new capital. Whether it's through specific use cases, partnerships or technological breakthroughs, the way forward requires more than relying on Bitcoin's speed.

As Ki Yang Joo rightly sums it up, “Bitcoin's future growth lies with ETFs, institutions, and governments—not with retail traders. Altcoins must adapt to this new reality.