No Wonder Altseason Hasn't Started Yet, Crypto Analysts Reveal The Reason

Crypto analysts reveal the reason Altseason hasn't started (Photo; Doc. Crypto News Flash)

JAKARTA - The crypto market is experiencing major changes, especially in which flow of Bitcoin (BTC) dominates the market. Crypto analysts who use the pseudonym The Flow Horse reveal that the funds entering Bitcoin this time will not flow into altcoins as happened in the previous cycle.

The analyst revealed the reason why current market conditions are heavily influenced by institutional players, including the massive purchase by MicroStrategy as well as the entry of funds into the Bitcoin spot ETF investment product.

In a post on social media platform X on January 29, 2025, The Flow Horse said that institutional investors supporting the current increase in Bitcoin prices tend not to shift their profits to altcoins.

"The funds that buy and encourage (price increases) Bitcoin come from entities such as ETF and MicroStrategy. Many people expect these funds to flow to altcoins, but in reality, the market has changed. Adaptation or death," he wrote.

In addition, The Flow Horse added that one of the main reasons why there will be no "altseason" in the period where altcoin outperforms Bitcoin is the increasing number of digital assets in the market. The increasing number of altcoins makes liquidity more divided, making it difficult for all assets to experience simultaneous increases.

"The capital rotation in altcoins is still happening, but it is increasingly limited. The market is no longer experiencing a comprehensive increase as before because there are too many assets that do not have strong fundamentals," he added.

The analyst also observed the dominance of Bitcoin, which is currently at 59.88%. These indicators are used by traders to measure the extent to which altcoins can compete with Bitcoin in terms of market capitalization.