Currently, the reasons why altcoin season has been delayed are:
1. The 2024 Bitcoin halving event has strengthened its scarcity narrative, attracting funds that might have flowed into riskier altcoins.
2. Liquidity tightening, with quantitative tightening draining liquidity from financial markets, reducing risk appetite. As speculative assets, altcoins rely on excess capital; without liquidity, they can only stagnate.
3. Delayed interest rate cuts: Despite market rumors that the Federal Reserve may shift to easing policies, there is still no probability of a rate cut in May.
4. Too many coins, but liquidity is not keeping up. New projects are launched every day, but the total capital pool remains dispersed, leading to potential returns being diluted. More tokens are competing for the same liquidity, making it difficult for even promising projects to gain attention.
Currently, it is key to invest patiently and selectively in projects with strong fundamentals—such as artificial intelligence, DeFi, or Layer-2 solutions.
