Many crypto investors are waiting for the so-called 'altseason' — a period when altcoins (alternative cryptocurrencies) sharply increase in price, yielding significant profits. However, there are several reasons why this cycle may not see an altseason or it may be much weaker than in previous years.
1. Bitcoin dominance
Bitcoin continues to hold a large portion of the market, its dominance (share of the total cryptocurrency market capitalization) remains high. Institutional investors are primarily interested in BTC and ETH, rather than speculative altcoins.
2. Regulatory pressure
In various countries, laws regarding cryptocurrencies are becoming stricter, especially in the USA and EU. Many altcoins may be classified as securities, making it difficult to trade them on major exchanges. This reduces investor interest and liquidity.
3. Trend shifts
The cryptocurrency market is changing: the focus is now on Bitcoin ETFs, institutional investments, and more stable assets. Many retail investors who previously drove the altseason have lost interest or incurred losses in past cycles.
4. Change in market mechanics
Previously, altseason would occur after a significant rise in Bitcoin, as traders would take profits in BTC and transfer them to altcoins. However, now with the arrival of derivatives, ETFs, and more complex financial instruments, the mechanism of capital flow has changed.
5. Growth of real projects, not speculation
The market is becoming more mature, and investors are becoming more selective. Attention is now focused on blockchains with real applications (e.g., Ethereum, Solana, Polkadot), rather than on hundreds of speculative meme coins and projects without a clear economy.
💲💲💲Although short-term pumps of individual altcoins are still possible, a classic altseason like in 2017 or 2021 may not occur. It is important to approach investments consciously, monitor global trends, and consider that the crypto market is becoming more professional and regulated.