Following the recent sharp downturn in the cryptocurrency market on October 10, which wiped out nearly $19 billion in leveraged positions, Bitget CEO Gracy Chen has articulated a stark outlook for what many have long anticipated—a resurgence of altcoins, or “altseason.” In her analysis, she claims that the prospect of a 2025 altseason is effectively cancelled, reflecting a significant shift in market dynamics.
In a post shared on X, Chen highlighted a prevailing sentiment among market makers and venture capitalists that the risk-reward ratio for altcoin trading has dramatically deteriorated. She indicated that while once there were expectations for a new wave of altseason in the coming years, reality has shifted the focus toward projects with tangible utility. “Let’s be real — alt season will not come in 2025 or 2026,” she proclaimed, adding that genuine infrastructure projects such as stablecoins and payment solutions may fare better but are unlikely to issue new tokens.
Chen’s commentary underscores a broader trend where investors are moving away from speculative assets such as memecoins and microcap projects, gravitating instead toward those backed by real-world value and revenue generation. This reflects a significant maturation of investor behavior, suggesting that the era of speculative trading—often likened to a “casino”—is waning. The focus is shifting toward fundamental development and the building of sustainable projects.
Moreover, Chen raised concerns regarding the fate of the Digital Asset Treasury (DAT) phenomenon, suggesting that its boom might be nearing an end. Although DATs—digital tokens backed by companies’ treasuries—initially helped in capital-raising efforts, many of the latest deals appear to be mere “in-kind” swaps rather than substantive investments. “From the perspective of project teams and advisors, DATs make sense because they raise funds,” she noted, cautioning that investors might ultimately find themselves at a disadvantage.
In discussing the current state of the market, Chen acknowledged that it is still recovering from significant losses. Trading volumes across centralized exchanges have experienced a sharp decline, and many major market players have been liquidated due to over-leveraging. “Trading isn’t easy right now,” she stated. Unlike previous bullish cycles, the market currently lacks the same excessive optimism that often precedes a downturn.
Chen characterized the present market conditions as transitional, suggesting that the true peak—a moment of irrational exuberance marking the end of a cycle—has not yet emerged. She referenced past catalysts that triggered sharp declines in the cryptocurrency space: the ICO collapse in 2017, the FTX scandal in 2022, and posited that a similar reckoning could be on the horizon for 2025, potentially fueled by institutional leverage-driven bank runs.
In concluding her remarks, Chen conveyed a straightforward message: the speculative hype that previously characterized the market has diminished, and a return to patience and prudent investment strategies is now essential for stakeholders navigating the evolving cryptocurrency landscape.
