TechFlow news — On November 27, Ki Young Ju, CEO of CryptoQuant, posted on X analyzing the reasons why the anticipated altseason has not yet materialized. He pointed out that, compared to the previous bull market, the current Bitcoin rally is primarily driven by institutional investors and spot ETF demand. These funds differ from cryptocurrency exchange users and have no intention of rotating assets from Bitcoin into altcoins.
Ki Young Ju noted that since institutional investors mainly operate outside exchanges, asset rotation has become less likely. While institutions might allocate to major altcoins through investment vehicles like ETFs, smaller-cap altcoins still rely heavily on retail users within exchanges. For the total market cap of altcoins to reach new highs, substantial fresh capital inflows into exchanges are required—but current levels below historical peaks indicate reduced liquidity from new users.
Moreover, future growth in Bitcoin will come largely from ETFs, institutions, and even governments—not retail traders on exchanges. Therefore, altcoin projects should focus on developing independent strategies to attract new capital, rather than relying on momentum generated by Bitcoin.
Ki Young Ju added that he remains optimistic about altcoins, but expects only a few high-quality projects to draw significant new investments. The upcoming altcoin market movement will be highly differentiated, with not all altcoins capable of returning to their all-time highs.
