CryptoQuant CEO Ki Young Ju suggests that altcoins may need to devise distinctive strategies to attract new capital, rather than banking on Bitcoin’s momentum. In a post dated Nov. 27, Ju pointed out that the pattern of capital flow into Bitcoin has shifted, with institutional investors and spot ETFs fueling the current surge.

Ju argues that these institutional players and ETF purchasers have no plans to shift assets from Bitcoin to altcoins. He observes that smaller altcoins still depend on crypto exchange users for purchases. To reach new market peaks, altcoins would require a significant inflow of fresh capital into crypto exchanges, according to Ju.

While a resurgence of retail interest in Bitcoin could stimulate exchange activity, Ju predicts that Bitcoin’s future growth will be spurred by ETFs, institutions, and potentially governments, rather than retail traders on crypto exchanges.

These observations come as many were anticipating a new “altcoin season,” a period typically marked by significant value increases in smaller digital assets. However, current market conditions seem to favor Bitcoin. As a result, Ju advises altcoins to concentrate on crafting unique strategies to draw in new capital instead of depending on Bitcoin’s momentum.

Currently, the total cryptocurrency market capitalization is $3.24 trillion, with Bitcoin representing $1.85 trillion of the total.