Crypto researcher Distilled Crypto challenged the notion of an "Altcoin Season" and explored the factors contributing to the lackluster performance of altcoins despite Bitcoin’s BTC/USD solid performance.
What Happened: Distilled Crypto notes that while Bitcoin has reached $60,000, sentiment remains abysmal, and the anticipated altcoin season of 2021 has yet to materialize. He delves into the key differences in this cycle, highlighting Ethereum’s ETH/USD lag and the premature surge of other altcoin sectors. "While some sectors excel, there’s no widespread surge," the trader observes.
Accessibility to Bitcoin has improved significantly, with ETFs and traditional brokers offering exposure without the need for complex wallet management. He argues that lack of awareness is not the primary issue hindering altcoin growth. "Bitcoin has been around for over 15 years and has seen many cycles,” he notes. “Its financial story, though solid, no longer grabs attention."
Instead, Distilled Crypto attributes the altcoin market’s struggles to a supply and demand issue, stating, "The market lacks sufficient liquidity and retail interest. Demand for altcoins is very low, yet there’s an abundance of choices." The rapid increase in altcoins has diluted an already saturated market, making a widespread altcoin boom exceptionally difficult.
Despite these challenges, Distilled Crypto believes that altcoins are not a lost cause but emphasizes that the game has changed. "The days of an ‘easy mode’ are over," he asserts. "If you can’t trade attention, you’ll likely get wrecked."
For those not inclined to trade, Distilled Crypto suggests focusing on deep research and cherry-picking multi-cycle winners in institutionalized sectors and next-generation primitives.
Also Read: With Altcoins At First Ever ‘Weekly Golden Cross’, This Prominent Trader Remains ‘Heavily Allocated’
Why It Matters: Looking ahead, Distilled Crypto anticipates that attention and liquidity will continue to dominate the market in the short term. However, as regulations tighten and the altcoin market becomes oversaturated, a strategy focused on fundamentals could prevail. "Just be prepared—it might take longer than expected," the researcher cautions.
Distilled Crypto’s analysis echoes the sentiments of another crypto researcher, Gideon, who warned earlier in May 2024 that retail investors are unlikely to drive the ongoing bull run. He pointed out that Bitcoin broke new all-time highs with the buying power of ETFs, not retail investors, and that retail interest and savings are currently low.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Is It Time For Altcoins To Shine? Expert Predicts Uptick For DOGE As BTC Finds Solid Ground
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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