The majority of crypto investors are waiting for a big increment in the trade price of the top flagship cryptocurrencies, mainly in which they invested. The majority of people want to know the expected time frame where they will see the peak of this bull run for the altcoins, cryptocurrencies other than Bitcoin.
Some experts believe that a big rally for the altcoins will not come in this Bitcoin bull run year because everything has totally changed & here, people need to understand that these drastic changes made this market mature enough against volatility, so people should limit their expectations.
Here are the four big reasons which are retarding big rallies in altcoins.
Population of cryptocurrencies
In 2013-14, there were nearly 500 Cryptocurrencies in the crypto space, and this number increased by 10-fold in 2017-18.
Now, to date, there are nearly 36.4 million Cryptocurrencies in the market.
The capital inflow in the crypto space merging in all these altcoins. In particular, only meme tokens have a market cap of $109 billion.
Popular crypto analyst “Ali Chart” on X (formerly Twitter) also noted similar things on behalf of data provided by Dune.
Big new investors
Over the last couple of years, the market saw the entry of new crypto investors. The majority of the new crypto investors are traditional money market investors.
In a common analysis, it is found that these big investors always remain ready to invest for a 5% dump & immediately sell for a 5% pump. This is a very big negative factor for the expected bull run.
Crypto spot ETF products
In 2024, a dozen Bitcoin spot ETF products entered the traditional money market, indirectly helping traditional investors allocate capital in Bitcoin. Later, Ethereum spot ETF applications were also approved by the American securities regulatory body.
These issuers of these spot ETF products buy/sell suddenly in huge amounts, creating high volatility for a small percentage of price swings. Such developments ultimately degrade the confidence of short as well as long-term investors easily.
Inclination toward Bitcoin
The Bitcoin market is now very big, with more than $2 trillion market cap, and the majority of the big institutional investors, including crypto companies, are allocating capital to Bitcoin, instead of altcoins, to easily handle volatility & make sure profit.
All these things are making the altcoins market less susceptible to price increments.
Experts believe that the bull run may be over in the next 3 months.
Read also: US SEC introduces SAB 122, does it mean Banks will provide Bitcoin services?
