Evaluating the latest developments in the cryptocurrency markets, 10x Research revealed the main reasons why the altcoin season has not started in its published analysis.
According to the report, despite Bitcoin trading at record levels and increasing institutional fund inflows, there is no significant movement in the altcoin market. According to analysts, this situation is caused by the lack of new trends in the market and the selling pressure caused by the unlocking of many tokens.
According to 10x Research, the low liquidity environment makes it difficult to sustain the rise in altcoin prices. “The old scenario that once worked with hype and leverage is ineffective against the 4.5% US Treasury yield today,” the analysis said, noting that even Ethereum has quietly entered a period of ‘staking for modest returns’.
The analysis also stated that there is no need for huge capital to push the prices of altcoins up, and that a few large purchase orders can easily move the low liquidity market. However, it was stated that in order to sustain this rise, large-scale individual investor participation is required, and this is where the real problem begins.
*This is not investment advice.
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