While Bitcoin continues to soar to fresh all-time highs, the same optimism hasn’t reached the altcoin market.
Most alternative cryptocurrencies remain stagnant, and according to Bitget CEO Gracy Chen, investors waiting for the long-promised “altcoin season” may be in for a disappointment.
Altcoin Optimism Fades Amid Market Slowdown
Speaking at a recent industry event, Chen said the widespread expectation of a broad altcoin rally is misplaced. “Altcoin season won’t even come in 2025 or 2026,” she warned, calling current market conditions too weak to support another speculative wave.
Her remarks come at a time when Bitcoin has become the clear leader of the crypto recovery, while smaller tokens lag far behind. Although a few – such as Ethereum and BNB – managed to break previous highs earlier in the year, most altcoins remain deeply below their former peaks.
Web3 Funding Collapse Cripples Growth
Chen attributed the muted performance of altcoins to the sharp pullback in Web3 investment. Venture capital firms, once the biggest drivers of token development and ecosystem growth, have largely retreated from the sector.
“What we’ve seen since last year is a systematic withdrawal of VC capital,” she explained. “That lack of funding has dried up innovation, and the October 11 crash only deepened the wounds.”
As a result, developers have fewer resources, investors face higher risks, and new projects struggle to gain traction. The result is a market where excitement has given way to hesitation – and where Bitcoin’s institutional appeal now overshadows altcoin speculation.
Market Enters a State of Caution
Bitget’s internal data shows that trading volumes across major exchanges have fallen by 20% to 40% since early October. According to Chen, this decline signals that investors are choosing caution over greed, preferring to wait for clearer signals of recovery.
“This isn’t the time to chase quick profits,” she said. “The market needs time to stabilize. Both buyers and sellers should remain patient until confidence truly returns.”
The Bitget chief noted that several market makers were liquidated during recent volatility spikes – another reminder that leverage-heavy trading can magnify losses in uncertain conditions.
Bitcoin Retains Institutional Trust
While altcoins struggle to regain footing, Bitcoin continues to attract institutional portfolios. Chen revealed that a growing number of family offices have begun allocating between 5% and 20% of their assets to BTC, seeing it as a defensive play rather than a speculative one.
“Major investors are positioning themselves for long-term stability, not short-term gains,” she said, adding that market tops are often marked by “greed, not fear.”
Patience Over Prediction
For now, Chen believes the crypto market has entered a rebuilding phase. Momentum may return to altcoins eventually, but not until the Web3 investment landscape revives and developers begin launching new, utility-driven projects again.
Her message to traders was clear: “The next big altcoin cycle will come, but not soon. Surviving the wait is the real skill.”
