The cryptocurrency markets are unlikely to experience an altcoin season characterized by a simultaneous rise in prices, as many traders are now concentrating on more specific trends or solely on Bitcoin, according to Bitget’s operating chief, Vugar Usi Zade.
“I don’t foresee an altseason,” Usi Zade remarked during an interview with Cointelegraph at the Token2049 conference in Singapore on Wednesday.
“The notion that ‘this is altseason […] and everything will rise because it’s altseason’ won’t happen, and I am quite certain about that.”
“Unfortunately, I do not expect a significant price surge, as there is no underlying rationality for it,” he further explained.
“No noteworthy technological advancements have occurred. We haven’t seen any substantial developments from projects. What justifies a price increase? Just because it’s the timing? That doesn’t make sense.”
Historically, altcoins — cryptocurrencies other than Bitcoin (BTC) — have tended to rise in prices alongside Bitcoin. An altcoin season is described as a timeframe when altcoins outpace Bitcoin because of their higher risk-to-reward ratios.
End of Crypto “Seasons” as Bitcoin Decouples
Usi Zade stated that the cryptocurrency market is “moving away from seasons,” exhibiting shorter, more frequent cycles as the crypto market no longer reacts in sync with Bitcoin.
“Bitcoin operates independently; its influence on the rest of the market is negligible,” he noted. “Bitcoin has decoupled not only from the stock market but also from altcoins.”
“We’ve observed numerous occasions where Bitcoin is the only asset in the green, while the overall market is in the red. Money isn’t flowing from Bitcoin into altcoins.”
Future crypto rallies or seasons are likely to revolve around dominant narratives, with only those tokens aligned with trending sectors experiencing gains, according to Usi Zade.
“Currently, we are discussing RWA [real world assets]; likely, a portfolio of RWAs will rise, but that won’t apply to anything else,” he said.
Market Attitude Shift Required for Sustainable Altcoins
Usi Zade mentioned that crypto investors often think in short cycles, making it “nearly impossible” for projects to sustain themselves long-term, as the market demands profitability within months.
“It took Amazon over a decade to turn a profit, yet we expect a crypto venture to accomplish this in eight months,” he stated. “This mindset poses a significant challenge for the entire market.”
He noted that traditional businesses often see initial investors sell to other venture firms, which helps maintain capital flow. Conversely, in crypto, “the opposite occurs,” with tokens being immediately available to retail investors.
“The token is a distinct product. It’s essential to engage with traders to ensure that your token is actively traded and your price does not decline, as a price nearing zero means your project is essentially dead, with little hope of recovery,” Usi Zade said.
Bitcoin Becoming the Sole Recommendation
Usi Zade indicated that many in the crypto community now recommend newcomers focus solely on Bitcoin, distancing from the previously endorsed allocation of 70% Bitcoin and 30% Ether (ETH).
“Nowadays, no one advises you to hold both Bitcoin and Ethereum,” he remarked. “Everyone suggests just Bitcoin.”
He added that Ether’s price is “significantly more stable” compared to Bitcoin, which has consistently risen to new highs over the past year, leaving investors with “no incentive” to acquire ETH.
The market dominance of Bitcoin and Ether has remained relatively stable over the past year, with Bitcoin currently holding a 58% market share, down from a peak of 65% in the past year, while ETH’s market share is at 12%, recovering from multi-year lows of 7.3% in April, according to CoinMarketCap.
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Additional reporting by Ciaran Lyons.
