Bitcoin Domination Still Strong, Will Altcoin Season Postponed?
JAKARTA - Bitcoin continues to dominate the crypto market, driven by the increasing institutional investment and Bitcoin exchange-traded fund (ETF) products that are increasingly popular. Responding to this trend, CryptoQuant CEO Ki Young Ju believes that crypto assets other than Bitcoin should start developing an independent strategy to attract new capital so that they no longer depend on Bitcoin momentum.
In his upload on X on November 27, 2024, Ju confirmed that the dynamics of capital flows into Bitcoin have changed with the entry of large institutions and strong boosts from Bitcoin ETF, while altcoins still rely a lot on supply and demand from crypto exchange users.
Ju explained that institutional investors and ETF buyers who now dominate the Bitcoin market do not plan to move their assets to altcoins. "Small Altcoins still rely on crypto exchange users to make purchases," said Ju. To achieve a significant price increase, altcoins need to attract "a substantial new capital to crypto exchanges," he added.
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Bitcoin's dominance is increasingly evident with the global market capitalization of crypto, which now reaches US$3.24 trillion (Rp51.2 quadrillion), where Bitcoin accounts for around US$1.85 trillion (Rp29.2 quadrillion).
This condition shows how powerful Bitcoin is in controlling the crypto market, while altcoins are struggling to get the same attention from big investors. Ju argues that Bitcoin growth in the future is likely to come from large institutions, ETFs, and even governments, instead of retail traders on crypto exchanges.
Currently, some investors expect an altseason or altcoin season. As additional information, altseason is a period in which crypto asset prices other than Bitcoin experience massive price increases. However, the fact is that altcoins are still difficult to compete with Bitcoins that continue to dominate.
Therefore, Ju appealed to altcoin developers to focus more on improving unique values and creating strategies that can attract new investors, without having to rely on Bitcoin as the driver.