Key Points
- Altcoins need to develop unique strategies to attract fresh capital, according to CryptoQuant CEO Ki Young Ju.
- Bitcoin’s growth is now driven by institutional investors and ETFs rather than retail traders on crypto exchanges.
CryptoQuant CEO Ki Young Ju suggests that altcoins should not rely on Bitcoin’s (BTC) momentum but instead create independent strategies to attract fresh capital. His statement came in a post on November 27, where he pointed out that the capital flow dynamics into Bitcoin have changed.
Institutional Investments Driving Bitcoin’s Growth
The current Bitcoin rally is driven by institutional investors and spot ETFs, unlike earlier times when crypto exchange users were the main drivers. Ju added that these institutional investors and ETF buyers have no intention of shifting their assets from Bitcoin to altcoins.
He also noted that small-cap altcoins still depend on crypto exchange users for their purchases. To reach new market highs, these altcoins would require a significant influx of fresh capital into crypto exchanges.
Shift in Bitcoin’s Growth Dynamics
Ju believes that Bitcoin’s future growth will be driven by ETFs, institutions, and possibly governments, rather than retail traders on crypto exchanges. This view comes amid a prolonged delay in the expected “altcoin season,” a period when smaller digital assets traditionally see large surges in value.
With the current market conditions favoring Bitcoin’s dominance, Ju suggests that altcoins should focus on developing independent strategies to attract new capital. As of the time of reporting, the total cryptocurrency market capitalization stands at $3.24 trillion, with Bitcoin representing $1.85 trillion of the total.