Bitwise’s Chief Investment Officer (CIO), Matt Hougan, has spoken about the expectations for the altcoin season in a recent statement.
In a recent statement, Bitwise’s Chief Investment Officer (CIO), Matt Hougan, addressed the rumors surrounding the early start of the altcoin season.
While Bitcoin has only seen a few hundred percent increase from its lows, the altcoin market is experiencing a significant recovery.
Hougan believes that the main driver of the altcoin season is cryptocurrency enthusiasts making profits from Bitcoin, feeling wealthy, and seeking 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 stocks, high-risk ventures, 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 holdings and shift into altcoins.
An additional catalyst for the altcoin season is the improved technology infrastructure for altcoins compared to previous cycles.
Developments like the Dencun update on Ethereum and the rise of Layer 2 are actual technological advancements that make the use of currency much more exciting than before.
Hougan believes this doesn’t necessarily mean the uptrend in the market or the altcoin season will end soon.
In history, the altcoin season limits the price appreciation of Bitcoin as capital moves from Bitcoin to the rest of the market.
But the 2024 price increase in Bitcoin is being driven by an entirely new stream of money flowing into the ecosystem through ETFs – money from the traditional.
This suggests that the price increase could continue as long as there is new money pouring in through ETFs.
Therefore, according to analysts, this time an “all-season” (altcoins and Bitcoin both rising) may occur instead of just an altcoin season.
