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Bitcoin Resumes Rally, Eyes $100K Target as Altseason Hits Roadblock: Analyst
- Bitcoin climbs 3% to near $100K after a recent dip as institutional interest remains strong, propelling the rally, despite some recent profit-taking affecting US Bitcoin ETFs.
- US Bitcoin ETFs now control over 5% of all Bitcoin, mirroring the high trading volumes experienced during their early days.
- CryptoQuant CEO suggests altcoins need fresh retail capital for significant growth, as institutions focus more on Bitcoin and major alt ETFs.
Bitcoin is continuing on its merry way to $100K, gaining 3% in the past 24 hours after a slump to US$91,171 (AU$140,356) earlier this week.
And it still seems to be institutional interest driving the rally, as the US Spot Bitcoin exchange-traded funds (ETFs) are continuing with their accumulation. Although Monday and Tuesday saw some profit taking, a combined half a billion in USD left the funds on both days, overall, they continue to grow.
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The US funds now alone hold 1.074 million BTC – or 5.118% of all 21 million Bitcoin – valued at US$103.5 billion (AU$159.1 bn). The recent inflows to the funds are reminiscent of the early days when February and March saw massive trading volumes. While initially marked by significant inflows and outflows, the current trend shows a sustained increase in inflows.
New Capital Needed for Altseason: Analyst
When Bitcoin rises, altcoins usually follow. And a look at the top ten crypto assets by market cap confirms this, with ETH (9%), BNB (6.4%) and ADA (7.6%) all making bigger gains than BTC.
However, CryptoQuant founder and CEO Ki Young Ju, recently argued that we’re far from having altcoin season back, because for that we need retail investors to come back and inject fresh capital into the market.
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He said the ETFs brought a change in how the market works, because institutional investors don’t usually rotate from Bitcoin to altcoins. These investors may allocate to altcoin ETFs but small cap altcoins still need retail attention.
For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges. If Bitcoin retail FOMO reignites, exchange user activity might increase, potentially setting the stage for an altcoin season. However, Bitcoin’s future growth is expected to come from ETFs, institutions, and maybe govts, rather than retail traders on crypto exchanges.
Ki Young Ju, CryptoQuant founder and CEO He said therefore alts should “focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum”.
Ju confirmed he remains bullish for altcoins but said altseason will only happen “for a few, not every altcoin will hit its previous ATH”.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
