Altcoin Season: What’s Delaying the Boom?

The much-anticipated altcoin season has yet to arrive during the current market cycle, leaving many investors wondering what’s causing the delay. A recent report by crypto exchange Bybit and Block Scholes, a London-based research firm, offers insights into the possible factors contributing to this phenomenon.

Understanding the Current Market Outlook

The report, “Altcoin Rotation — Why Altseason Hasn’t Come This Time?”, highlights several key factors that have contributed to the current crypto market outlook. One significant factor is that the April 2024 Bitcoin halving did not trigger the historical dip in BTC dominance. Despite Bitcoin’s struggles since its all-time high, its dominance remains high, marking a departure from previous bull cycles.

Another factor is the underperformance of Ethereum, which has failed to lead the market into a new altseason. “Since 2022, Ethereum has underperformed not only Bitcoin but also several competing ‘Ethereum Killers,’ such as Solana (SOL) and Sui (SUI),” the report states.

Institutional Adoption and its Impact

The introduction of Bitcoin spot exchange-traded funds has complicated the crypto landscape, with institutional investors remaining reluctant to rotate capital into small-cap coins. However, the report suggests that the potential for a late surge in altcoins remains, with stablecoin growth hinting at continued retail interest amid robust positioning.

A significant indicator of this outlook is the $19 trillion in trading volume for centralized exchanges in the fourth quarter of 2024. This data supports the idea that retail interest is still strong, which could lead to a renewed altcoin season.

What’s Next for Altcoins?

The report highlights several scenarios that could contribute to a late surge in altcoins. These include:

  • BTC reaching new highs in 2025, with capital rotation intensifying if ETH skyrockets.
  • Institutional investors warming up to top altcoins, driven by new products and regulatory clarity.
  • Notable retail interest, including in meme coins, which could fuel a renewed altcoin season.

“The potential for a late surge in altcoins remains, with stablecoin growth hinting at continued retail interest amid robust positioning.”

As the crypto market continues to evolve, it’s essential to stay informed about the latest developments. For more news and insights on the world of cryptocurrencies, visit Global Crypto News.

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