Understanding the Underperformance of Altcoins in the Current Cycle
What Is Causing Altcoins to Underperform?
Altcoins are facing significant challenges in the current cycle. This time, the crypto landscape is evolving, with Bitcoin's dominance playing a pivotal role. Expert Ki Young Ju from CryptoQuant sheds light on why altcoins struggle, indicating a lack of fresh liquidity and shifts in market dynamics.
The Shift in Bitcoin Demand
- Bitcoin is generating higher interest in traditional finance options, such as ETFs.
- This has limited capital rotation typically seen in past altseasons.
- Institutional investors show less willingness to diversify into altcoins.
As the altcoin market cap lags behind Bitcoin's, there is pressing need for altcoins to attract new investments independently.
Potential for Future Altseason
Despite the challenges, optimistic analysts notice emerging growth patterns. Historically, altseasons have followed specific Bitcoin performance indicators, which could suggest a turnaround for altcoins sooner than expected.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.