Analyst: Altcoins will not rise simultaneously like before, but will experience larger yet more limited rotations

2025-01-07 10:13:59
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ChainCatcher news, according to cryptocurrency analyst Miles Deutscher's analysis on social media, the altcoin season will not be like it was in 2021 because:

  • The loose conditions of 2021 were an extreme anomaly
  • The surge in the number of new launch projects and the dilution of altcoins

This does not mean it won't thrive like before (and may even thrive more), just that the approach will be different:

  1. It will no longer be that all altcoins rise simultaneously, but rather there will be larger yet more limited rotations (e.g., AI and Meme coins)
  2. Liquidity will gradually flow in, rather than spiking sharply as it did during the 2021 stimulus period
  3. Strong ETF liquidity has reduced the impact of Bitcoin (BTC) price increases on liquidity flow (now more of a psychological effect rather than a real one)
  4. The market will shift more towards a trader's market, as the strategy of "holding many coins waiting for a rise" will no longer be as effective as before

There are still huge opportunities in this field, but trading/investment styles need to be adjusted according to current market conditions.

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