TechFlow news — On January 7, cryptocurrency analyst Miles Deutscher analyzed on social media that the altcoin season will not be the same as in 2021, because:
- The loose market conditions of 2021 were an extreme anomaly
- There has been a surge in newly launched projects and dilution of altcoins
This doesn't mean the market won't be as vibrant as before (it might even be more so), but the dynamics will differ:
- Instead of all altcoins rising simultaneously, there will be larger but more focused rotations (e.g., AI and Meme coins)
- Liquidity will flow in gradually, rather than spiking sharply as during the 2021 stimulus period
- Strong ETF flows have reduced Bitcoin’s (BTC) impact on liquidity movements (now more psychological than actual)
- The market will shift further toward traders, as the strategy of "holding many coins and waiting for price increases" will no longer be as effective
There are still massive opportunities in this space, but it's essential to adapt trading/investment styles to current market conditions.
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