🔥 Tough Times Ahead for Altseason, Warns CryptoQuant CEO
posted 21 hr ago
Ki Young Ju, CEO of CryptoQuant, has cautioned that the next altseason may bring unexpected challenges and complexities, catching the market off guard.
his isolation blocks the direct bridging of liquidity from Bitcoin to altcoins, dashing the hopes of those relying on the "traditional altseason framework."
Ju advises investors to support projects implementing these strategies while adopting a long-term investment mindset.
Only a chosen few will win the game,he commented while analyzing the prevailing market landscape.
Ki Young Ju, CEO of CryptoQuant Source: Reddit
Liquidity Struggles
While market sentiment stays positive, the availability of fresh liquidity remains limited. Ju pointed out that Bitcoin is increasingly isolating itself from the broader crypto ecosystem, constructing a "paper-based Layer 2 ecosystem" built on tools like ETFs, corporate investment funds, and similar products.his isolation blocks the direct bridging of liquidity from Bitcoin to altcoins, dashing the hopes of those relying on the "traditional altseason framework."
Altcoins Breaking Away from Bitcoin’s Influence
Historically, altcoins followed Bitcoin’s lead, with price movements strongly correlated. Now, that dynamic appears to be changing.Only a few are starting to show independent trends as they attract new liquidity,Ju highlights.
Read on: Bitcoin Surges 100%, But Altcoins Lag Behind. Why Is That?
Altcoins: Adapting to Market Changes
CryptoQuant’s leader identifies two paths that could position altcoins for success in the evolving market:- Introducing Financial Derivatives: By offering products like ETFs, altcoins could emulate Bitcoin’s success in attracting institutional capital.
- Developing Digital Money Ecosystems: Ecosystems anchored by stablecoins or Bitcoin as their base could offer a compelling alternative.
Ju advises investors to support projects implementing these strategies while adopting a long-term investment mindset.
Altseason: A Selective Boom
A blanket surge in altcoin prices during the next altseason seems improbable. Only projects that push the boundaries with genuine innovation and robust liquidity strategies are likely to thrive.This alt season ... going to be weird and challenging,he commented.
His analysis emphasizes the need for investors to adopt a calculated and strategic approach, especially given the fragmented nature and fierce competition in the crypto space.
Still, those who’ve made millions on meme coins might see things differently.
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