Will the Altcoin Season Not Happen? Experts Provide Counterarguments

Recently, the cryptocurrency market has been continuously fluctuating, raising concerns that there will be no more Altcoin Season as before. However, analyst Simeon Koch believes that these views are being exaggerated and provides three reasons why altcoins can still experience strong growth. 1️⃣ The Market Is Not Saturated As Many People Think Some experts are concerned that the large number of tokens is diluting the market, preventing altcoins from booming as they did in 2017 and 2021. But Koch refutes this with important evidence: ✅ 99% of new tokens are just short-term meme coins and quickly lose liquidity, with no significant impact on the market. ✅ The market size has increased 20 times compared to 2017 and is three times larger than the beginning of 2021, creating conditions for altcoins to develop. ✅ Asset prices depend not only on liquidity but also on investor sentiment and profit expectations. 2️⃣ "Sell Token Unlock" Does Not Cause as Much Pressure as Expected Some analysts are concerned that the unlocking phases of tokens in 2025 will create strong selling pressure, weakening altcoins. However, the total unlock token is expected to be only 75 billion USD, significantly lower than the 137 billion USD in the 2021 Altcoin season. This indicates concerns about excessive selling pressure.

3️⃣ Monetary Policy Is Not the Sole Determinant Some people believe that Altcoin Season only happens when the Federal Reserve (Fed) pumps money into the market. However, Koch argues: 📌 Asset prices increase not only when there is new money flow, but also due to investor expectations. 📌 History shows that the market reacts to monetary policies rather than waiting for the Fed to implement them. 📌 Many investors are holding cash and waiting for a buying signal, indicating that funds are ready to return to the market at any time.

Does Bitcoin ETF Make Altcoins 'Disgraced'? The explosion of Bitcoin Spot ETFs has attracted billions of USD into BTC, raising concerns that altcoins may not be able to attract large capital inflows. However, Koch believes that altcoins still have great potential, especially when the market shifts from Bitcoin to riskier assets.

💡 Conclusion: Despite the somewhat negative market sentiment at present, the possibility of another Altcoin season remains very high. Those proclaiming that the 'Altcoin season is dead' may have to rethink in the coming year.