As a seasoned crypto investor with over a decade of experience in this dynamic market, I find myself nodding in agreement with CryptoQuant CEO Ki Young Ju’s insights. The landscape has indeed shifted, and it’s clear that institutional investors and ETFs are now the primary drivers of Bitcoin’s growth.
As Bitcoin‘s expansion is predicted to be fueled by institutional investments and potential ETFs, the leader at CryptoQuant recommends that altcoins devise distinctive strategies to attract new investment capital.
As a researcher delving into the world of cryptocurrencies, I’ve come to realize that it might be prudent for altcoins to reconsider their dependence on Bitcoin’s (BTC) surge and instead, seek fresh capital inflows through self-sustaining strategies. According to CryptoQuant CEO Ki Young Ju, the flow of capital into Bitcoin has shifted, with institutional investors and spot ETFs now spearheading the current market uptrend. In a recent post on Nov. 27, Ju underscored this point.
It appears that the influx of capital into altcoins is being delayed compared to previous cycles. This time around, the growth in Bitcoin is mainly due to increased interest from institutional investors and Spot Exchange-Traded Funds (ETFs). Unlike individual cryptocurrency exchange users, these institutional investors and ETFs have a different investment strategy, which may be influencing the timing of the altcoin season.
— Ki Young Ju (@ki_young_ju) November 27, 2024
According to CryptoQuant’s CEO, Ju, institutional investors and ETF buyers are not planning on shifting their assets from Bitcoin to other cryptocurrencies (altcoins). Instead, these small-cap altcoins still depend on users of crypto exchanges for purchases. For the market value of altcoins to reach new records, there needs to be a substantial increase in fresh investment into crypto exchanges, as Ju points out.
Ju posits that the future expansion of Bitcoin may stem more from Exchange-Traded Funds (ETFs), institutional investors, and possibly governments, rather than individual retail traders on cryptocurrency exchanges. A surge in retail interest could boost exchange activity, but long-term growth might originate elsewhere.
Ju’s comments come amid a prolonged delay in what many had expected to be a new “altcoin season,” where smaller digital assets traditionally see large surges in value. With the current market conditions favoring Bitcoin’s dominance, altcoins “should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum,” Ju concluded.
At the current moment, the overall value of all cryptocurrencies combined is approximately $3.24 trillion. Out of this total, Bitcoin makes up around $1.85 trillion.
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2024-11-27 15:10