Part 5/7:
Inflation and Liquidity Concerns: Liquidity is crucial for alt season to flourish. Current macroeconomic conditions are less favorable, leading to uncertainty regarding capital flow into the crypto market.
Retail Investor Behavior: Retail investors, who typically fuel the enthusiasm during alt seasons, have not returned in meaningful numbers outside the meme coin arena.
Potential Catalysts for Alt Season
Even amidst skepticism, there are billowing clouds of possibility that could usher in a new alt season. Short-term catalysts could include:
- Tax Return Season: With many individuals preparing their taxes, a wave of fresh liquidity could enter the crypto space.