Institutional investors may be hindering the potential for an altcoin season in the cryptocurrency market. Bybit analysts suggest that the influx of institutional capital has transformed traditional capital flows within the crypto space. Although sentiment among institutional investors is notably bullish, led by insights from Bitwise's Matt Hougan, these investors are unlikely to exchange their Bitcoin for altcoins, even under favorable regulatory conditions. This reluctance may contribute to the overall downbeat atmosphere in the market. Nevertheless, Bybit remains optimistic, indicating that increasing stablecoin supply and significant exchange volumes indicate ongoing retail participation. Retail engagement has surged, as evidenced by a 700% increase in crypto trading revenue reported by Robinhood. This data, although from a previous market quarter, suggests that retail investors are eager to engage once again. Thus, while the dynamics may have shifted, the potential for an 'altseason'-like surge is still plausible if the favorable conditions align.

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