According to the operating chief of Bitget, one of the world’s largest crypto exchanges, crypto markets are unlikely to see the altcoin season “everything goes up” as many traders either focus on narrower trends than they are now, or focus solely on Bitcoin.
“I don’t think there’s an Altseseason,” Vugar Usi Zade told Cointelegraph at the Token2049 Conference in Singapore on Wednesday.
“The whole idea that “this is altseason (…) and everything goes up because everything is an Altseseason,” we don’t see it. I’m very solid. ”
“Unfortunately, there’s no logical reason behind it, so I don’t think we’ll see that huge pump,” he added.
“There were no technological advancements. We haven’t seen any big things coming out of the project. Why are prices rising? Is it because it’s time? It’s not.”
Historically, Altcoins (crypto tokens other than Bitcoin (BTC)) have gathered together with Bitcoin. The Altcoin season refers to the period when Altcoins exceeds Bitcoin due to the high risk-to-reward ratio.
As Bitcoin separates, the code “season” “season”
Usi Zade said the Crypto market is “very far from the season” as the crypto market is no longer trading in parallel with Bitcoin.
“Bitcoin is its own rally. Its impact is almost zero in other parts of the market,” he added. “Bitcoin has been separated from the stock market as well as from the Altcoins.”
“We’ve seen so many instances, so Bitcoin is the only one in green and then the whole market is red. Money isn’t flowing from Bitcoin to ALT.”
Crypto’s rally, or seasons, may be based on popular narratives, and only tokens involved in the sector see the benefits, said Usi Zade.
“Today, we’re talking about RWA (Real World Assets). It’s likely that the RWA portfolio will go up, but that won’t be as close to anything else,” he said.
Changes in market attitudes needed for sustainable altcoins
Usi Zade said crypto investors are thinking in a short cycle, making it “nearly impossible” for projects to maintain themselves in the long run.
“It took Amazon over a decade to make it profitable, and now we want Crypto ventures to do that in eight months,” he said. “That’s the biggest problem and how we build the whole market.”
He said traditional companies often sell their first investors to other ventures upon leaving. However, with Crypto, it “is the opposite” with tokens that are readily available to retail investors.
“The token is another product. You need to work with the trader to make sure the price is not falling.
Bitcoin is becoming the only recommendation
Usi Zade said many people are recommending newcomers to ensure that many of Crypto hold only Bitcoin, avoiding widely promoted portfolio allocations of 70% Bitcoin and 30% Ether (ETH).
“Now no one ever tells you Bitcoin and Ethereum anymore,” he said. “Everyone will tell you only bitcoin.”
He added that the price of ether is “a lot more stable” compared to Bitcoin. Bitcoin has been focusing on new highs for almost a year, making investors “unmotivated” to buy ETH.
The market advantage of Bitcoin and Ether has been relatively stable over the past year. Bitcoin currently maintains a market share of 58% from its 12-month peak of 65%, while ETH’s market share is up 12% from its multi-year low of 7.3% in April per CoinmarketCap.
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Additional report by Ciaran Lyons.
