The head of CryptoQuant recommends altcoins develop distinctive strategies to attract new capital, given that institutional investments and ETFs will fuel Bitcoin’s future growth
According to Ki Young Ju, CEO of CryptoQuant, altcoins may need to reconsider their dependence on Bitcoin’s growth and concentrate on attracting new investors through separate tactics. Ju noted that the mechanics of capital moving into Bitcoin have shifted, with spot ETFs and institutional investors now spearheading the current rise in an X post on November 27.
These institutional investors and ETF buyers, in contrast to users of cryptocurrency exchanges, “have no intention of rotating their assets from Bitcoin to altcoins,” according to Ju, who also notes that small-cap altcoins “still rely on crypto exchange users to buy them.”” According to the CEO of CryptoQuant, cryptocurrencies would require a “significant influx of fresh capital to crypto exchanges” in order to reach new market highs.
Ju thinks that Bitcoin’s future growth will come “from ETFs, institutions, and maybe governments, rather than retail traders on crypto exchanges,” even though a resurgence of retail interest in the cryptocurrency could lead to an increase in exchange activity.
Ju’s remarks coincide with a protracted postponement of what many had anticipated to be a fresh “altcoin season,” during which time the value of lesser digital currencies typically experiences significant spikes. Altcoins “should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum,” Ju said, given the current market dynamics that favor Bitcoin’s supremacy.
Bitcoin makes up $1.85 trillion of the $3.24 trillion total market capitalization of cryptocurrencies, as of this writing.
