Alt season is dead. Three things could revive it, Wintermute says

Core Insights - The altcoin market is currently underperforming, but analysts at Wintermute believe it could recover if certain conditions are met [1][3] - The primary issue is that new investments are primarily flowing into custodial vehicles like ETFs, limiting liquidity and reducing altcoin rally durations by 66% compared to previous years [2] - A potential altcoin recovery hinges on the expansion of ETF and Digital Asset Treasury mandates to include more altcoins [2] Group 1: Market Dynamics - Altcoins have not met traders' expectations in recent years, with Bitcoin typically leading rallies, but this pattern has not occurred despite Bitcoin reaching an all-time high of $126,000 [3] - Institutional investors are increasingly dominating crypto trading, focusing on long-term investments and being less reactive to short-term price changes, which has hindered altcoin rotations [4] Group 2: Potential Catalysts for Recovery - A new Bitcoin rally could create a wealth effect that benefits altcoins, especially following the passing of the Clarity Act, which aims to regulate the $3.1 trillion crypto industry [5] - The least likely catalyst for an altcoin upswing is the return of retail investors to the crypto market, as they are now more attracted to investments in public companies involved in cutting-edge technologies like AI, which offer similar risk and return profiles [6]