Altcoin Season Requires New Capital Influx, Says CryptoQuant CEO

According to Odaily, Ki Young Ju, the founder and CEO of CryptoQuant, recently highlighted the necessity for new capital from retail traders to fuel the altcoin season. This period typically follows a Bitcoin bull market, characterized by a rapid increase in altcoin prices. Ju pointed out that institutional funds are currently tied up in ETFs, making it unlikely for institutional investors, who indirectly hold cryptocurrencies through investment tools, to shift their profits from blue-chip assets like Bitcoin (BTC) or Ethereum (ETH) into altcoins. Ju emphasized that for altcoins to reach their historical peak market capitalization, a significant influx of new capital into cryptocurrency exchanges is essential. He noted that the current market capitalization of altcoins being below their previous all-time highs indicates a reduction in liquidity from new exchange users. Ju advised that altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin's momentum. Despite these challenges, Ju remains optimistic about the future of altcoins.