Altseason going to be weird and challenging. Only a chosen few will win the game. Market sentiment is good, but there isn’t much fresh liquidity,- said CEO of the analytical platform CryptoQuant, Ki Young Ju.
The expert noted that Bitcoin is gradually becoming independent from the rest of the cryptocurrency ecosystem. According to him, this asset is forming its own financial system based on traditional instruments such as exchange-traded funds (ETFs), MicroStrategy (MSTR) shares, investment funds, and others. Within this system, it becomes difficult to directly link Bitcoin with other crypto assets.
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Young Ju emphasized that altcoins previously exhibited dependence on Bitcoin due to their correlation, but this connection is now weakening. Some altcoins are beginning to show independence, attracting new liquidity, he added.
The head of CryptoQuant concluded that altcoins face two paths: either follow Bitcoin’s example or build a fully-fledged digital money ecosystem using stablecoins or Bitcoin as a foundation.
“Altcoin investors need to find a coin that can do one of two things and hold onto it for the long term,” said Young Ju.
He also previously noted that institutional investors and ETF buyers do not plan to shift their funds from Bitcoin to altcoins.