With Bitcoin’s future growth driven by institutional investments and ETFs, the CryptoQuant head advises altcoins to create unique approaches to draw fresh capital.

Altcoins may need to rethink their reliance on Bitcoin’s (BTC) momentum and focus on drawing fresh capital through independent strategies, CryptoQuant CEO Ki Young Ju says. In an X post on Nov. 27, Ju highlighted that the dynamics of capital flowing into Bitcoin have changed, with institutional investors and spot ETFs now driving the current rally.

Unlike crypto exchange users, these institutional investors and ETF buyers “have no intention of rotating their assets from Bitcoin to altcoins,” Ju says, adding that small-cap altcoins “still rely on crypto exchange users to buy them.” For altcoins to hit new market highs, they will need a “significant influx of fresh capital to crypto exchanges,” the CryptoQuant CEO notes.

While a renewed wave of retail interest in Bitcoin could spark an increase in exchange activity, Ju believes that Bitcoin’s future growth will come “from ETFs, institutions, and maybe govts, rather than retail traders on crypto exchanges.”

Ju’s comments come amid a prolonged delay in what many had expected to be a new “altcoin season,” where smaller digital assets traditionally see large surges in value. With the current market conditions favoring Bitcoin’s dominance, altcoins “should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum,” Ju concluded.

As of press time, the total cryptocurrency market capitalization stands at $3.24 trillion, with Bitcoin accounting for $1.85 trillion of the total.