⚡️ Wintermute: The altcoin cycle has been interrupted. What lies ahead?
Wintermute analysts point out that the classic "Bitcoin → Ethereum → Altcoin" capital rotation model is no longer effective. In 2025, the market landscape will change: ETFs will evolve into a "closed ecosystem," trapping liquidity within top assets and preventing it from flowing into smaller market cap tokens.
The average duration of altcoin rebounds has shortened from 60 days to 20 days. To break free from this stagnation, experts have proposed three possible scenarios:
1️⃣ Expanding liquidity through ETFs. Launch more exchange-traded funds targeting other altcoins to release capital for a broader market.
2️⃣ Bitcoin and Ethereum rise vertically. If these two leading assets show strong and sustained growth, investors will typically seek higher-risk assets for excess returns.
3️⃣ The return of retail interest. This is the most challenging path. Currently, private capital is keen on artificial intelligence and tech giant stocks. To bring liquidity back to cryptocurrency, a reversal of interest points is needed, leading to new capital inflows and stimulating active issuance of stablecoins.
Wintermute concludes: The next trend for the altcoin sector will depend on whether catalysts can significantly expand liquidity beyond the "narrow circle," or whether concentration will persist.
What is your current investment strategy?
💎 Only holding BTC/ETH
🚀 Believing that the altcoin season is coming, currently buying "meme coins"
📉 Waiting in stablecoins until conditions improve
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