Why Altseason Has Not Started Yet | Part 2 of 4

Liquidity ≠ Liftoff

Author

Saâd Dhif
December 23, 2025

In partnership with

Yesterday, we explained why altseason hasn’t started:

It’s not broken, it’s loading.
BTC is still the gravitational center.
ETH hasn’t flipped BTC.
And retail hasn’t emotionally surrendered (yet).

Today, we dive into the most dangerous misconception in crypto right now:

"More liquidity = altcoins pump."

It’s false. And if you don’t understand why, this cycle will shake you out.

Before we start…

Our Skool Community is growing. We provide you:

  • Equity Market Updates

  • Crypto Market Updates

  • Single Equity Updates & Analysis

  • And soon: Active and Passive Portfolios designed just for you.

See you there

Liquidity Is Necessary, But Not Sufficient

Yes:
✅ Liquidity is expanding
✅ Monetary conditions are easing
✅ Risk assets will eventually benefit

But that doesn’t mean altcoins moon tomorrow.

Liquidity flows hierarchically.

Every cycle, capital moves like this:

💵 Cash
🧾 Bonds
📈 Equities
₿ BTC
Ξ ETH
🔹 Large caps
🔸 Mid caps
🧬 Small caps

Altseason starts at the bottom of that ladder.

Right now, capital is still being absorbed at the top.

That’s why:

  • BTC pumps first

  • ETH lags

  • Alts feel "dead"

This isn’t a failure of the cycle.
It’s proof the cycle is working.

Why Liquidity Is Still Trapped at the Top

Three key reasons:

  1. Risk perception is still high
    ➝ Capital hides in the most liquid, “safe” assets
    ➝ Trust takes time to rebuild

  2. BTC remains the cleanest narrative
    ➝ ETF flows
    ➝ Institutional exposure
    ➝ Macro hedge
    ➝ When in doubt, capital flocks to BTC

  3. Alts are emotionally crowded
    ➝ Frustration ≠ capitulation
    ➝ Retail hasn’t really let go yet
    ➝ Liquidity waits for surrender

Smart Investors Don’t Guess. They Read The Daily Upside.

Markets are moving faster than ever — but so is the noise. Between clickbait headlines, empty hot takes, and AI-fueled hype cycles, it’s harder than ever to separate what matters from what doesn’t.

That’s where The Daily Upside comes in. Written by former bankers and veteran journalists, it brings sharp, actionable insights on markets, business, and the economy — the stories that actually move money and shape decisions.

That’s why over 1 million readers, including CFOs, portfolio managers, and executives from Wall Street to Main Street, rely on The Daily Upside to cut through the noise.

No fluff. No filler. Just clarity that helps you stay ahead.

ETH is the Bridge

Let this sink in:

Altseason is impossible without ETH leading.

ETH/BTC is the on-ramp to altcoins.
It’s not just a chart, it’s the permission slip for the next phase.

When ETH/BTC trends up:
✅ Risk appetite expands
✅ Confidence returns
✅ Capital flows downstream

Right now, ETH/BTC is stabilizing, it’s not leading.
Which means altseason is still loading.

Most Traders Expect Instant Rotation: They’re Wrong

Retail imagines a clean waterfall:

BTC pumps → ETH pumps → Alts explode

Reality is messier.

Rotation is:

  • Layered

  • Slow

  • Frustrating

First BTC dominance compresses.
Then ETH gains quiet strength.
Then large caps move.
Then mid & small caps follow.

People chasing instant gratification won’t be there when the real move starts

Why Money Printing Headlines Mislead You

QE ≠ Immediate altcoin rally.

Here’s how it actually works:

Liquidity → Stabilizes
→ Supports
→ Then expands risk

Altseason lives in the final stage — not the first.

We are in transition right now.
It’s slow, boring, uncomfortable.
Which is why most people won’t survive it.

Altcoins Feel Worse Than They Are

Because they’re doing their job.

Alts absorb:

  • Doubt

  • Boredom

  • Impatience

Altseason requires exhaustion.
Not excitement.
Not hope.

That takes time.

What This Phase Is Really Doing

Because they’re doing their job.

Alts absorb:

  • Doubt

  • Boredom

  • Impatience

Altseason requires exhaustion.
Not excitement.
Not hope.

That takes time.

What This Phase Is Really Doing

Instead of asking:

❌ “When altseason?”

Ask:

✅ “Am I positioned to benefit when ETH leads?”
✅ “Am I watching ETH/BTC and dominance?”
✅ “Am I emotionally attached to timelines?”

Altseason rewards structure, not hope.

Final Word

Right now, the market is building a spring.

Not for those watching.
But for those waiting with structure.

Stay focused.
Stay flexible.
Stay sharp.

We’re not just observing…

Join us and stay 3 steps ahead.

Whatever your needs may be, have a look at our linktree and book your free 1-on-1, or join our Skool Community

—
Saâd
from Swiss Islamic Finance