The chief executive of blockchain intelligence platform CryptoQuant says a structural shift in the accumulation of Bitcoin (BTC) is the culprit behind a delayed altseason.

On-chain analyst Ki Young Ju tells his 379,400 followers on the social media platform X that the primary drivers of the current Bitcoin rally are entities not interested in loading up on altcoins.

According to the CryptoQuant executive, altcoins now have to come up with a compelling use case as they can no longer rely on Bitcoin’s momentum to see higher prices.

“Compared to the last cycle, the nature of capital flowing into Bitcoin has shifted. The current Bitcoin rally is primarily driven by demand from institutional investors and spot ETFs (exchange-traded funds).

Unlike crypto exchange users, institutional investors and ETF buyers have no intention of rotating their assets from Bitcoin to altcoins. Moreover, as they operate outside of crypto exchanges, asset rotation becomes inherently less feasible…

Altcoins should focus on developing independent strategies to attract new capital rather than relying on Bitcoin’s momentum.”

Ki Young Ju also notes that the recent explosion in the volume of some altcoins is due to a rise in the liquidity of dollar-pegged crypto assets.

“Altseason is no longer defined by asset rotation from Bitcoin.

The surge in altcoin trading volume isn’t driven by BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.

Stablecoin liquidity better explains the altcoin markets.”

The analyst goes on to say that while he’s bullish on altcoins, he thinks that the rising tide will not lift all boats.

“Don’t get me wrong, I’m bullish on altcoins. Just pointing out that only a select few attract fresh capital. Altcoin season will come, but it’ll be for a few, not every altcoin will hit its previous all-time high.”