Altcoins have been underperforming this cycle, raising doubts on whether this time will be different from previous altseasons. A crypto expert and onchain analyst provided one explanation of why it could be happening, looking at market dynamics.
Previously, a market bull cycle was made of Bitcoin (BTC), reaching new highs and money rotating to altcoins. This dynamics created what analysts call an “altseason,” when other cryptocurrencies outperform Bitcoin, sending its market dominance downwards.
On November 27, Ki Young Ju, CEO and analyst at CryptoQuant, noted that altcoins’ market cap lags behind that of Bitcoin. According to him, this is caused by a significant change in the demand for Bitcoin – away from spot exchanging.
“Compared to the last cycle, the nature of capital flowing into Bitcoin has shifted. The altcoin market cap below its previous ATH indicates reduced fresh liquidity from new exchange users. For altcoins to reach a new all-time high market cap
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