This Altseason Won’t Be What You Expected, According to CryptoQuant CEO – Here’s Why

The chief executive of blockchain intelligence platform CryptoQuant believes a potential incoming altseason will not be like prior ones for one key reason. On-chain analyst Ki Young Ju tells his 381,200 followers on the social media platform X that, unlike past cycles, liquidity can no longer flow at the same levels from Bitcoin ( BTC ) into altcoins, sending them soaring. The analyst says there is now massive traditional finance participation in Bitcoin, including through spot market BTC exchange-traded funds (ETFs) and increased buying by software company MicroStrategy (MSTR). “This alt season won’t be what you expected. It’s 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. Bitcoin is drifting away from the crypto ecosystem. Bitcoin has built its own paper-based layer-2 ecosystem through ETFs, MSTR, funds and more. In this paper-based L2 Bitcoin bridging to other altcoins is impossible.” He also shares a chart showing Bitcoin’s price correlation with alts. A score of 1 is the highest correlation, whereas the lowest correlation possible is 0. “Altcoins used to move together based on their correlation with BTC, but that pattern has now broken. Only a few are starting to show independent trends as they attract new liquidity.” Source: Ki Young Ju/X The analyst notes that spot market BTC ETFs have accumulated as much as is believed to have been mined by Bitcoin’s pseudonymous founder Satoshi Nakamoto in the early days of the cryptocurrency’s existence. “Bitcoin spot ETFs now hold as much BTC as Satoshi Nakamoto (Patoshi).” Source: Ki Young Ju/X He also says that investor demand for the ETF product is returning to its historical high. “Bitcoin ETF demand is as strong as at their initial approval this year.” Source: Ki Young Ju/X Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post This Altseason Won’t Be What You Expected, According to CryptoQuant CEO – Here’s Why appeared first on The Daily Hodl .