Altcoin prices may remain subdued without fresh capital from retail traders, according to CryptoQuant CEO Ki Young Ju. While institutional funds are tied to ETFs, retail FOMO could reignite altcoin momentum, suggesting a need for innovative strategies to attract liquidity.
Altcoin Season Relies on Retail Liquidity
The CEO and creator of CryptoQuant, Ki Young Ju, has stated that retail traders will need to infuse additional funds before "altcoin season" can begin, which is defined as a time of fast appreciating altcoin values that usually follows a Bitcoin bull market, Cointelegraph shares.
According to the quantitative analyst, institutional investors own crypto indirectly through investment vehicles, and they are not likely to reinvest profits from blue-chip assets like Bitcoin or Ethereum into altcoins as their money is already invested in exchange-traded funds. According to what Ju wrote:
The expert said, "Altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin's momentum." He also made it clear that he is still "bullish" on altcoins.
Retail FOMO Is Crucial for Small-Cap Altcoins
To attract new money that will push altcoin values higher, especially altcoins with a smaller market cap, the CEO of CryptoQuant argued that reawakening retail FOMO is crucial.
Famous trader Willy Woo predicted in October 2024 that the popularity of altcoins would decline with each market cycle. On social media, the trader informed his followers:
Indicators Suggest Retail Investors Are Returning
It appears that retail traders are already experiencing FOMO, according to several signs. On November 27, open interest in Ethereum futures hit an all-time high, suggesting that the smart contract asset is getting a lot of attention from investors and maybe setting the stage for a bull run that could affect other cryptocurrencies.
Over the last week, retail investors have bought around $100 million worth of MicroStrategy stock. For many investors, MicroStrategy represents a leveraged wager on Bitcoin, and as a result, the stock has grown popular among traders.
Comment 0