Well now, let me tell ya, Crypto analyst Miles Deutscher reckons the reason our awaited “altcoin season” is still missing like a sock in the laundry is that our dear speculative capital has swapped hangouts—from major altcoins to those on-chain low-cap meme coins. 😆
Our much-anticipated altcoin hootenanny hasn’t showed up yet, and Miles Deutscher says he knows why. In his recent dispatch on X, Deutscher mentioned that the rise of something called Pump Fun 🤣, a platform that makes creating on-chain meme coins easier than falling off a log, is the culprit swiping all the dollars from major altcoins.
The launch of Pump Fun is directly correlated to the destruction of the altcoin market vs $BTC. 🙃
The reason we’ve seen no major “alt season” across majors, is because the speculative capital that would’ve once poured into top 200 assets, instead decided to jump the gun and…
— Miles Deutscher (@milesdeutscher) February 4, 2025
Back in the good ol’ days, when Bitcoin (BTC) rallied, speculative capital used to mosey on over to mid-to-high market cap altcoins, kick-starting what traders call “alt season.” According to CMC Altcoin Season Index, the market hits “alt season” when 75% of the top 100 coins (excluding stablecoins like Tether and DAIl as well as the asset-backed tokens such as WBTC, stETH, and cLINK) outpace Bitcoin in the last quarter. Right now, the index is lazing around at 37. 📉
As per Deutscher, this time, the script got flipped on its head. Instead of diving into top altcoins, traders started chasin’ after quick-witted low-cap on-chain tokens. “The reason we’ve seen no major ‘alt season’ across majors is cause the speculative capital that would’ve once flowed into top 200 assets instead decided to jump the gun and splash into on-chain low caps,” Deutscher mused. 🤔
Platforms like Pump Fun enable fellas to spawn and trade meme coins faster than you can say Jack Robinson, turning the crypto space into a rollicking casino. Early birds and insiders reap colossal gains, while latecomers (mostly your everyday Joes) end up holding the bag, as these illiquid tokens typically shed much of their value quicker than you can blink. 😛
Contrary to 2022, back when the common folk’s losses were mainly tethered to major altcoins trading on centralized exchanges with decent liquidity, Deutscher argues that this round, they found themselves entangled in those illiquid on-chain meme coins. “This turned into a wealth wrecking spree far greater than the early 2022 bear (LUNA aside), even though Bitcoin (and some big shots) are still riding high on a macro bull trend,” he elucidated.
Oddly enough, Deutscher doesn’t hold Pump Fun accountable. Instead, he points a finger at restrictive SEC regulations, which he believes have made it tougher for projects to launch fairly the traditional way, nudging the industry to find new tricks. He wrapped up with a wistful hope that “maybe that will change under Trump.” 🤞🏼
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2025-02-04 14:26