Altcoin season traditionally marked a period where altcoins outperform Bitcoin. However, the current market suggests a need to reassess this definition.
Memecoins' Role in Market Shifts
Some analysts believe memecoins siphon liquidity from the altcoin market. For instance, the launch of Pump.fun is linked to undermining the altcoin market versus Bitcoin. Miles Deutscher notes: "Early participants gained huge profits, while late-comers, mostly retail investors, saw losses."
Impact of Institutional Investments and ETFs
The rise of Bitcoin ETFs has influenced the market dynamics. January 2024 saw major investments into structures like BlackRock’s IBIT, which analysts argue draws capital away from speculative assets.
Nuances of Altcoins' Functions and Growth
The term 'altcoin' encompasses various assets, from governance tokens to NFTs. Research by CoinGecko shows significant divergence among altcoin categories this cycle, highlighting the importance of understanding their unique characteristics.
Altcoins now form distinct asset classes, necessitating a reevaluation of the term 'altseason.'
