Altcoins should stop relying on Bitcoin’s surge, CryptoQuant CEO says

While Bitcoin’s future growth will be driven by institutional investments and ETFs, the head of CryptoQuant advises altcoins to create unique approaches to attract new capital.

CryptoQuant CEO Ki Young Ju says altcoins may need to rethink their confidence in Bitcoin (BTC)’s momentum and focus on attracting fresh capital through standalone strategies. In his X post on November 27, Ju emphasized that the dynamics of capital flowing into Bitcoin have changed, with institutional investors and spot ETFs driving the current rally.

Why was the altcoin season postponed?

The nature of capital flowing into capital compared to the last cycle #Bitcoin has changed location. The current Bitcoin rally is primarily driven by demand from institutional investors and spot ETFs.

Unlike crypto exchange users, institutional investors and ETF… pic.twitter.com/dpDBCF0BTo

— Ki Young Ju (@ki_young_ju) November 27, 2024

Unlike crypto exchange users, these institutional investors and ETF buyers “do not intend to switch their assets from Bitcoin to altcoins,” Ju says, adding that small-cap altcoins “still rely on crypto exchange users to purchase them.” CryptoQuant CEO stated that altcoins will need “significant fresh capital inflows into crypto exchanges” to reach new market highs.

While a renewed wave of retail interest in Bitcoin could lead to a surge in exchange activity, Ju believes Bitcoin’s future growth will come from “ETFs, institutions, and perhaps governments rather than retail traders on crypto exchanges.”

Ju’s comments come amid a prolonged delay in what many expect will be a new “altcoin season” in which smaller digital assets traditionally see big increases in value. Ju concluded that given current market conditions favor Bitcoin’s dominance, altcoins “should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum.”

As of writing, the total cryptocurrency market capitalization stands at $3.24 trillion, with Bitcoin accounting for $1.85 trillion of the total.