Bitwise’s Chief Investment Officer, Matt Hougan, has spoken about the expectations for the altcoin season in a recent statement.
In a recent statement, Bitwise’s Chief Investment Officer, Matt Hougan, addressed the rumors surrounding the early start of the altcoin season.
Although Bitcoin has only experienced a few hundred percent increase from its lows, the altcoin market is undergoing a significant recovery.
Hougan believes that the main driver behind the altcoin season is cryptocurrency enthusiasts who have made profits in Bitcoin, feel wealthy, and then seek more speculative assets to invest in.
This phenomenon is not unique to the cryptocurrency economy. It also happens in the traditional economy, where people start investing in small-cap, high-risk, and other speculative assets after making money from large-cap stocks.
According to Hougan, wealthy cryptocurrency investors are starting to take a portion of their Bitcoin assets and move into altcoins.
An additional catalyst for the altcoin season is the improved technological infrastructure for altcoins compared to previous cycles.
Developments such as the DenCun update on Ethereum and the rise of Layer 2 are significant technological advancements that make the use of cryptocurrencies much more exciting than before.
Hougan believes that this does not mean the uptrend market or altcoin season will end soon.
Historically, the altcoin season limits the price increase of Bitcoin as capital flows from Bitcoin to the rest of the market.
But the 2024 Bitcoin bull run is being driven by a completely new money flow into the ecosystem through ETFs – money from the traditional market.
This indicates that the price increase can continue as long as there is new money flowing in through ETFs.
Therefore, according to analysts, this time an “altcoin and Bitcoin season” (where both altcoins and Bitcoin rise) could occur instead of just an altcoin season.
