Cryptocurrency Baptism: Encountering Wall Street

Summary: Sir, the times have changed! Author: Bright, Foresight News

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Will the Altcoin Season Come Again?

This is a question that almost all crypto players are asking. During the last bull market from 2020 to 2021, very few people shouted "All in BTC," while during DeFi Summer, numerous altcoins surged fivefold. The total market capitalization of cryptocurrencies skyrocketed from about $200 billion in January 2020 to slightly over $3 trillion in November 2021. It can be said that 90% of those who truly turned the tide in this bull market were supporters of altcoins. However, the harsh reality is that new assets will definitely come, but the explosive altcoin season, which seeks to find a sword in the boat, is already unlikely under current circumstances.

The Defeated Army of Altcoins

While many are still waiting for the altcoin season, four years later, the crypto industry has quietly approached the end of the bull market. From 2024 to mid-2025, the total market capitalization of cryptocurrencies has actually grown dramatically by 130%.

• On November 15, 2021, BTC reached a peak of around $69,000, and the total market capitalization of cryptocurrencies peaked at about $3 trillion.
• On July 14, 2025, BTC reached a peak of $123,091, and the total market capitalization peaked at about $3.91 trillion.
In contrast, considering the garbage Memecoins rushed to issue during the Meme craze, there are already millions of altcoins on-chain. This time, altcoins have suffered a major defeat.

In response, perhaps all we can say is: Sorry, we failed.

The reason we cannot "Make Altcoin Great Again" is that the crypto industry, which is high on the theme of compliance, is experiencing the painful process of cutting away the excess fat that grew during the wild past.

Wall Street's Land Grab Game

Under the trend of crypto compliance in the United States, Wall Street's regular army, which originally dared not act recklessly, has begun to flood into the "雷池" (a term for a risky area) of cryptocurrencies during the Biden administration, while also planting the colonial flag of financial hegemony on-chain. From the player's perspective, the game structure composed of whales, retail investors, miners, and crypto institutions has vanished. Retail investors, who jokingly call themselves "Nasdaq and Dow Jones crypto traders," have genuinely become opponents of professional hedge funds on Wall Street. From the asset perspective:
• VC-led setups and carefully designed low liquidity, high market cap strategies are no longer viable.
• Unregulated Meme coins continue to bleed after retail investors lost interest.
• DeFi also seems not to have become the first choice for institutional hot money.
In fact, wealthy institutions on Wall Street entered crypto with a three-step approach:
• Use capital power to control Bitcoin, the most "decentralized" and highest consensus crypto, gaining a voice in the sector (e.g., Grayscale's Bitcoin ETF).
• Penetrate and expand their controlled financial power into crypto, attracting native crypto investors to switch investment categories (e.g., stock tokenization and altcoin "micro-strategy" companies).
• Issue new crypto-related assets that comply with existing financial regulations, mastering the pricing power of crypto assets (e.g., crypto company IPOs).
The hot money that native crypto investors originally hoped for from Wall Street did not foolishly flood into the already filled "decentralized" track. They chose to play their own game—and want to force you to play theirs with cold hard cash.

If you can't beat them, then join them.

The Undercurrent of IPO Fever

On June 5, Circle went public on the New York Stock Exchange, with its stock price soaring over 160% on the first day, eventually reaching a peak of $289.99—a staggering increase of 9.64 times from the issue price of $31. Meanwhile, cryptocurrencies performed only mediocrely. Circle's return on investment is the authentic flavor of past altcoin seasons. Following this, a series of crypto-related companies announced plans for IPOs in the second half of 2025, including domestic exchanges like Kraken, FalconX, Gemini, and Bullish, as well as fintech companies and asset management institutions like Bitgo, Grayscale, and Figure. There were even reports of OKX planning to go public in the U.S. Besides the bustling U.S. stock market, the South Korean exchange Bithumb announced a two-step strategy for listing on the Korean KOSDAQ and the U.S. Nasdaq, while the Thai exchange Bitkub stated it would list on the Thai Stock Exchange. On July 30, U.S. exchange Kraken was reportedly seeking to raise about $500 million at a valuation of $15 billion, further stimulating the crypto industry. Previously, Robinhood announced its entry into stock tokenization, even launching equity for top private companies like OpenAI and SpaceX, officially opening up the imagination for Pre-IPO. As Kraken stirred up its listing expectations recently, private equity trading platforms like Forge conveniently provided access and exit channels for those "wanting to sell" and "wanting to buy early." Generally, investors can purchase equity in unlisted companies through two methods:
• The P2P model: The platform matches sellers of Kraken equity with buyers, assisting both parties in completing KYC, due diligence, and contract signing.
• The SPV model: The trading platform establishes a special purpose vehicle (SPV) to pool buyer funds and collectively purchase equity in the target company.
Currently, the price on the Forge platform is $36.13, with a valuation of about $10 billion. If Kraken can successfully go public at a $15 billion valuation, current entrants may achieve over 50% excess returns. In summary, crypto company IPOs are like a rite of passage for the crypto industry. After receiving this recognition, it will gain widespread acknowledgment from the world, but this also means it must shed the outdated trinkets of its childhood. Yes, we are talking about those garbage projects that cannot calculate price-to-earnings ratios and only know how to create PowerPoint presentations.

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Frequently Asked Questions (FAQ)

Altcoin Season and Market Dynamics

Q: What is an altcoin season, and why is it less likely now? A: An altcoin season is a period when altcoins experience significant price surges, often outperforming Bitcoin. It's less likely now due to increased regulatory focus, the dominance of institutional players, and the maturity of the market, making it harder for smaller, less established altcoins to achieve the same explosive growth as in previous cycles. Q: How has Wall Street's entry into crypto changed the market? A: Wall Street's involvement has brought significant capital and a focus on compliance. This shift has professionalized the market but also made it more challenging for retail investors and smaller projects to compete, as institutional strategies often involve controlling dominant assets like Bitcoin and issuing regulated crypto-related products. Q: Are Meme coins still a viable investment strategy? A: While Meme coins experienced a craze, the article suggests they are "bleeding after retail investors lost interest," indicating they are now a high-risk, speculative investment with little underlying utility. Q: What is the significance of crypto companies going public (IPOs)? A: The IPO trend signifies a maturation of the crypto industry, akin to a "rite of passage." It means these companies are seeking broader market acceptance and must adhere to traditional financial standards, potentially shedding speculative or less compliant aspects of their operations.

Investment Strategies and Outlook

Q: What are the three steps Wall Street institutions are taking to enter the crypto market? A: 1. Controlling Bitcoin through capital power (e.g., ETFs). 2. Penetrating crypto markets with their financial influence, attracting native crypto investors. 3. Issuing new, compliant crypto-related assets to control pricing. Q: What is the outlook for altcoins in the current market cycle? A: The article suggests that an explosive altcoin season, similar to previous bull markets, is unlikely under current circumstances. The focus has shifted towards established, compliant assets and institutional-led strategies. Q: How are institutional investors approaching crypto compared to retail investors? A: Institutional investors leverage capital power, focus on compliance, and employ strategies like controlling Bitcoin and issuing regulated products. Retail investors, once the "wild west" participants, now find themselves competing directly with these professional hedge funds.

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Crypto Market AI's Take

The shift in the cryptocurrency landscape, as detailed in this article, highlights a significant evolution from the early, unregulated days to a more institutionalized and compliance-focused era. This transformation is driven by Wall Street's increasing involvement, which, while bringing stability and capital, also fundamentally alters the dynamics for altcoins and retail participation. At Crypto Market AI, we understand this paradigm shift. Our platform is designed to navigate this complex environment by leveraging advanced AI for market analysis and trading. We focus on providing actionable insights and tools that help both seasoned traders and newcomers adapt to these changing market conditions. By integrating AI-driven sentiment analysis, pattern recognition, and risk management, we aim to empower our users to make informed decisions in this evolving crypto ecosystem.

More to Read:

• What Drives the Prices of Cryptocurrency
• How to Evaluate Cryptocurrency
• AI Crypto Trading Bots: Revolutionizing Market Strategies

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ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice.

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Source: Originally published at ChainCatcher on Tue, 05 Aug 2025 12:11:56 GMT