{"id":11457,"date":"2024-03-10T15:01:12","date_gmt":"2024-03-10T13:01:12","guid":{"rendered":"https:\/\/forklog.com\/en\/bitwise-attributes-altcoin-surge-to-etf-inflows\/"},"modified":"2024-03-10T15:01:12","modified_gmt":"2024-03-10T13:01:12","slug":"bitwise-attributes-altcoin-surge-to-etf-inflows","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitwise-attributes-altcoin-surge-to-etf-inflows\/","title":{"rendered":"Bitwise Attributes Altcoin Surge to ETF Inflows"},"content":{"rendered":"<p>Bitwise&#8217;s Chief Investment Officer, Matt Hougan, attributed the simultaneous rise of Bitcoin and altcoins to the influx of new funds into the crypto industry via ETFs.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ IMO the primary driver of alt season is a classic \u00abwealth effect.\u00bb Crypto natives make money in bitcoin, feel rich, and then look for more speculative assets to invest in.<\/p>\n<p>\u2014 Matt Hougan (@Matt_Hougan) <a href=\"https:\/\/twitter.com\/Matt_Hougan\/status\/1766110140204466506?ref_src=twsrc%5Etfw\">March 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u00abThere is much discussion about the early start of altcoin season. Some are surprised by this, considering Bitcoin is \u201conly\u201d up a few hundred percent from its low. The primary driver of alt season is the classic \u201cwealth effect.\u201d Crypto investors make money in Bitcoin, feel wealthy, and seek more speculative assets to invest in,\u00bb he explained.<\/cite><\/p><\/blockquote>\n<p>According to the expert, a similar phenomenon occurs in the traditional economy, where people earn money from large companies and then look for smaller firms for venture investments.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">4\/ What catalyzes alt season is not the percentage return of bitcoin but the cumulative size of the wealth effect. And since the November 2022 lows, bitcoin\u2019s market cap has grown by $1 trillion. $1 trillion is a lot of money!<\/p>\n<p>\u2014 Matt Hougan (@Matt_Hougan) <a href=\"https:\/\/twitter.com\/Matt_Hougan\/status\/1766110142985302287?ref_src=twsrc%5Etfw\">March 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u00abThey also visit Vegas more often. Market rotation and \u201cwealth effects\u201d are as old as time. Alt season is catalyzed not by the percentage return of Bitcoin but by the cumulative \u201cwealth effect.\u201d Since November 2022, Bitcoin\u2019s market cap has grown by $1 trillion \u2014 that\u2019s a lot of money,\u00bb Hougan explained.<\/cite><\/p><\/blockquote>\n<p>Thus, wealthy crypto investors move their earnings from the leading cryptocurrency into other digital assets. Many altcoins are relatively small, so it doesn\u2019t take much money to drive up their prices, he added.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u00abAn additional and more exciting catalyst is the significant improvement in technological infrastructure for altcoins in past cycles. <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-developers-set-date-for-dencun-upgrade-on-mainnet\">The Dencun upgrade<\/a> in Ethereum and the development of second-layer solutions are real technological achievements,\u00bb noted the Bitwise CIO.<\/cite><\/p><\/blockquote>\n<p>Hougan explained that the current bull market differs from previous ones. Historically, alt season limited Bitcoin\u2019s growth as capital shifted from the leading cryptocurrency to others. However, the 2024 rally is driven by external money entering the ecosystem through ETFs.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">12\/ Historically, alts season capped the rise of bitcoin as marginal capital shifted out of bitcoin into the rest of the market.<\/p>\n<p>But Bitcoin\u2019s 2024 rally is being driven by entirely new money \u2014 non-crypto-native money \u2014 flowing into the ecosystem via ETFs.<\/p>\n<p>\u2014 Matt Hougan (@Matt_Hougan) <a href=\"https:\/\/twitter.com\/Matt_Hougan\/status\/1766110154293145809?ref_src=twsrc%5Etfw\">March 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to him, the trend will continue as long as more funds flow into Bitcoin from ETFs than flow out into other cryptocurrencies. The result will be an \u201call-season\u201d instead of a classic altcoin season.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u00abLastly: be careful. Many terrible projects are funded in bull markets, and many are already overvalued. Of course, there are also great projects. But not everything that rises deserves it,\u00bb concluded the expert.<\/cite><\/p><\/blockquote>\n<p>Previously, Hougan <a href=\"https:\/\/u1f987.com\/en\/news\/matrixport-predicts-bitcoin-could-reach-63000-by-march\">predicted Bitcoin would rise above $80,000<\/a> in the foreseeable future due to the success of ETFs.<\/p>\n<p>In March, the author of the bestseller \u201cRich Dad, Poor Dad\u201d and entrepreneur Robert Kiyosaki predicted digital gold would reach $300,000 in 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitwise&#8217;s Chief Investment Officer, Matt Hougan, attributed the simultaneous rise of Bitcoin and altcoins to the influx of new funds into the crypto industry via ETFs. 2\/ IMO the primary driver of alt season is a classic \u00abwealth effect.\u00bb Crypto natives make money in bitcoin, feel rich, and then look for more speculative assets to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[20,949,1138],"class_list":["post-11457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-altcoins","tag-bitwise","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"9","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/11457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=11457"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/11457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/11456"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=11457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=11457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=11457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}