Miles Deutscher points out the reason altcoin season hasn’t happened yet

Crypto Miles Deutscher analyst stressed that the reason why the Altcoin season has not yet started is that speculative capital has increased from the main altcoins to low capitalization coins with low capitalization.

The long -awaited Altcoin season has not yet materialized, and Miles Deutscher thinks he knows why. In his Recent article on xDeutscher underlined the rise of the pleasure of the pump, a platform facilitating the creation of pieces of easy meters in chain, such as the key factor diverting the capital far from the main altcoins.

Historically, when Bitcoin (BTC) Rallies, speculative capital takes place in altcoins with mid-height market capitalization, fueling what traders call the “Alt season”. According to CMC Altcoin season indexThe crypto market is considered to be in the Alt season when 75% of the 100 best pieces (excluding stable Like Tether and Dal as well as tokens supported by assets such as WBTC, Steth and Clink) surpass Bitcoin in the last 90 days. The CMC Altcoin season index is currently at 37.

According to Deutscher, this cycle took place differently because rather than moving to the upper altcoins, the traders chose to continue the token with low hood at the place. “The reason for which we have not seen any major” Alt season “through the majors is that the speculative capital which would have once flocked in the 200 best workers has rather decided to jump the pistol and flood in low caps On the channel, ”said Deutscher.

Platforms like Pump pleasure Allow users to throw and exchange pieces of memes instantly, creating a casino type configuration in Crypto. This leads to massive gains for adopters and early initiates while latecomers (mainly retail investors) are undergoing heavy losses, because these illiquid tokens often lose most of their value after being launched.

Unlike 2022, when most retail losses were limited to the main altcoins that discuss centralized exchanges with decent liquidity, Deutscher argues that this time, they remained trapped in parts of illite memes on chain . “It has become an event of wealth destruction much greater than the bear at the beginning of 2022 (Luna aside), even if Bitcoin (and some majors) are always in a macro-tauri tendency, “he said.

Interestingly, Deutscher does not “blame” the pleasure for this. He explains that the restrictive SEC regulations have made it difficult to launch projects by projects by traditional means, forcing industry to seek new models. He put an end to the post with speculation full of hope that “maybe it will change under Asset. “”