Increasing evaluations suggest that traditional altcoin season cycles may not occur in every market cycle. Experts indicate that market dynamics are changing, with ETFs creating a new balance. The growing disparity between Bitcoin $90,447 and altcoins highlights the need for investors to rethink their old habits.
How ETFs Impact the Cryptocurrency Market
Market analysts note that the introduction of spot Bitcoin ETFs has made Bitcoin more attractive to institutional investors. It is believed that ETFs create a discernible distinction between Bitcoin and altcoins. This situation may complicate the altcoins’ ability to catch an independent wave of appreciation.
Cosmo Jiang from Pantera Capital stated that ETFs have integrated traditional market dynamics into the cryptocurrency space. He mentioned that this shift could weaken previous sharp ascent periods for altcoins. Analysts emphasize that the rise of altcoins is no longer solely dependent on hype; instead, revenue-generating and sustainable projects will take precedence.
Will Altcoin Season Return?
Jeff Dorman, an investment manager at Arca, emphasized that past altcoin seasons belong to the market’s early stages. He pointed out that today’s investors are much more selective. CryptoQuant’s CEO, Ki Young Ju, stated that broad altcoin seasons have concluded but specific projects could still experience significant rises.
Merlijn The Trader suggested that a substantial value increase in the cryptocurrency market could occur if Bitcoin surpasses certain resistance levels. Breaking these critical thresholds could determine the market’s direction. However, analysts advise caution for those expecting a general altcoin rally.
The uncertainty surrounding the repetition of altcoin season in the cryptocurrency market remains. ETFs and project quality emerge as fundamental factors shaping the market’s future. Investors should consider new market conditions and lean towards long-term strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.