Altseason delayed due to lack of fresh retail capital — Ki Young Ju

CryptoQuant founder and CEO Ki Young Ju recently argued that altcoin season — a period of rapidly appreciating altcoin prices typically following a Bitcoin BTCUSD bull market — will require new capital injections from retail traders to commence.

The quantitative analyst wrote that institutional money is already tied up within exchange-traded funds, and the institutional investors, who own crypto indirectly through investment vehicles, are unlikely to rotate gains from blue-chip assets like BTC or Ether ETHUSD into altcoins. Ju wrote:

“For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges. The altcoin market cap below its previous ATH indicates reduced fresh liquidity from new exchange users.”

“Altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum,” the analyst concluded while clarifying that he is still “bullish” on altcoins.

Reigniting retail FOMO

The CryptoQuant CEO wrote that reigniting retail FOMO (fear of missing out) is central to attracting fresh capital that will drive altcoin prices higher — particularly altcoins with a smaller market capitalization.

In October 2024, popular trader Willy Woo said that altcoin seasons would weaken with each market cycle. The trader told his followers on social media:

Several indicators may signal that retail traders are already catching FOMO. Open interest in the Ether futures market reached a new high on Nov. 27 — indicating heightened market interest and a potential bull run for the smart contract asset that could spill over into other cryptocurrencies.

Retail investors also purchased approximately $100 million in MicroStrategy shares during the past seven days. The stock has become a favorite among traders — particularly retail traders who view MicroStrategy as a leveraged Bitcoin bet.