Twitter Space Highlight: Is Altcoin Season Coming? Unpacking BTC, Institutions & RWA

Host: 

Bitpush & SpreadX AI

Morderator: 

Vivian - Marketer of BitFi

Featured Speakers

• Douglas – CEO, Quantum Expeditions

• Aden – Head of Product Marketing, Vishwa

• Dr. PR – Web3 Thought Leader and Investor

• Chaz – Founding Engineer, Solayer

Space time: 

July 25,2025

Topic 1: Is an Altcoin Season Imminent?

Douglas began by drawing from his extensive background in the oil and gas sector, using market analogies to explain the divergence he expects between Bitcoin and other cryptocurrencies:

“In the early 2000s, natural gas and crude oil began to decouple in market behavior. I believe the same is happening in crypto. Bitcoin, as a store of value, will likely continue to appreciate, whereas Ethereum and other tokens—primarily built for utility—may not follow in lockstep.”

Dr. PR introduced a broader market view, suggesting that Ethereum is the ultimate "tech-meme token":

“A lot of Ethereum holders... it's all about revolutionizing with this technology. I'm buying Ethereum not buying the technology, I'm buying this 'tech-meme token' that's going to take off because it has experienced massive drawdowns (over 80% in bear markets)... then it reached $4,000 when the ETF was announced, then drew down 30% to $1,500, and you still have a lot of people bull posting...A lot of those people are now VCs in the space, very important in crypto. They're all bull posting Ethereum, and they're all part of the core. This is the ultimate 'tech-meme token...If you're holding any altcoin at this point, you should try to push Ethereum a little bit, because if Ethereum doesn't go up, then we won't have our altseason. Disclaimer: This is my personal view, not investment advice."

Aden advocated for a redefinition of the term "altcoin" itself, noting the emergence of tokenized real-world assets and financial instruments:

“The traditional notion of altcoins—non-Bitcoin digital assets—no longer captures the complexity of the current landscape. Tokenized real-world assets such as equities and commodities are becoming increasingly prevalent, and institutions are incentivized to bring these assets on-chain to streamline operations and reduce costs.”

Topic 2: Is Institutional Accumulation Driving the Current Rally?

Chaz asserted that market sentiment, rather than institutional participation alone, is fueling the rally:

“Recent pro-crypto policy developments—such as the FIT21 Act and other regulatory frameworks—have generated significant optimism. This enthusiasm, especially among retail investors, is playing a major role. While institutions are participating, the broader emotional lift in the market is equally important.”

He also warned of a potential short-term correction:

“The market may be nearing a local top. Bitcoin could retrace as over-leveraged positions are flushed out. I anticipate a healthy correction before further upward movement (altcoin season) resumes.”

Douglas believes the current rally is not yet solely or fully driven by institutional accumulation, but that this factor is rapidly increasing and winding up for a bigger impact. 

"While Bitcoin hasn't 'shot the moon' yet, recent U.S. legislation, like the GENIUS Act, has provided critical regulatory clarity and 'rails' that give traditional investors a significant new incentive to buy. This is evident in moves like Peter Thiel's substantial ETH accumulation, aiming to be the 'MicroStrategy for ETH,' which will certainly drive demand. However, even greater institutional demand is anticipated for Bitcoin due to its established global store-of-value status, including adoption by U.S. states for strategic reserves.

Furthermore, as regulatory clarity emerges from Washington D.C., the Real World Assets (RWA) sector is expected to gain significant institutional traction. Overall, I foresee much larger institutional adoption specifically for Bitcoin, along with the emergence of diverse new cryptocurrencies, as more comprehensive regulatory frameworks enable broader participation. This indicates that while institutions are increasingly active, the market's full potential is still being unlocked."

Topic 3: Could Growing Institutional Ownership Undermine Decentralization?

Dr. PR challenged the premise outright:

“Institutions currently hold only a fraction of the total Bitcoin and Ethereum supply—approximately 25% and less, respectively. The system's foundational decentralization remains intact. Moreover, Ethereum has over one million validators globally. There is little incentive for institutional players to sabotage networks in which they hold a stake.”

Aden supported this view, emphasizing that institutional participation may even encourage more productive asset usage:

“Institutional holders are likely to seek yield through DeFi and staking mechanisms, rather than merely sitting on their positions. Their engagement could, in fact, contribute to greater network utility rather than compromising decentralization.”

Topic 4: Retail FOMO and the Nature of Market Cycles

Dr. PR stated unequivocally that this cycle is not retail-driven:

“The dominant force in this market cycle is institutional capital—401(k)s, pension funds, and public companies—not retail investors. Retail participants are not the primary source of liquidity this time. Bitcoin and Ethereum's market prices, market cap, are increasing...But the power that can push the total market cap of crypto to the next level is not going to come from retail.”

Chaz provided a timeline for when retail euphoria may emerge:

“True retail FOMO will follow a prolonged period of new all-time highs and widespread media coverage. Once Bitcoin maintains record highs for one to two weeks, we’ll see mainstream headlines—'Bitcoin breaks records again'—and that will bring in retail capital. I anticipate this occurring around October, following potential Fed rate cuts in September (This Is Not Financial Advice).”

Topic 5: The Long-Term Promise and Challenges of Real-World Assets (RWA)

Aden traced the historical evolution of the RWA concept:

“The idea of tokenizing real-world assets dates back to early experiments like Centrifuge, which focused on clean energy loans. Today, Paxos alone holds $50 billion in gold, and claims to be exploring tokenization. Compliance remains a challenge—particularly legal and custodial—but the economic incentives for on-chain settlement and transparency are substantial.”

He also highlighted new possibilities:

“Tokenized assets could extend beyond traditional finance. For example, ownership of a tokenized Tesla share could confer additional benefits, such as charging discounts. This represents an evolution in asset utility.”

Chaz emphasized the global significance of RWA:

“RWAs are a superior asset class compared to many crypto-native tokens. They allow investors in restricted markets to access global financial products. It’s a form of regulatory 'arbitrage' that could unlock capital previously excluded from U.S. equities...I think this thing take some time is not that fast.”

Douglas reinforced RWA’s long-term appeal:

“My first thought reading an IBM blockchain white paper was putting real estate on the blockchain, and BlackRock has already done a trial. While institutions will initially drive RWA adoption, I believe creative minds will lead to a merge of retail and institutional RWA products. We're truly early in this space. RWA can act like enhanced crowdfunding, encompassing everything from art to luxury cars. The key to RWA taking off isn't just value appreciation, but cash flow. An asset that increases in value and generates cash flow will drive the most adoption".

Dr. PR  made some Risk Warning about RWA：

“Since 2017, every bull market peaked with RWA projects tokenizing Miami mansions – that's my top signal. I suspect these projects will reappear sooner this cycle, so maybe this signal won't 'correct' this time."

"Regarding 'tokenized stocks,' what's often seen is synthetic. True tokenized securities are about direct ownership, voting rights, and dividends, which Coinbase is trying to achieve via SEC approval. Current 'tokenized securities' often lack direct ownership, operating more like holding USDT vs. USD."

"Real RWA isn't about trusting an institution to own a mansion for you; those trust-based mansion tokens, I doubt, end well."

Topic 6: Wall Street’s Entrance—Crypto Trading in Banks

Chaz welcomed recent developments such as PNC’s partnership with Coinbase:

“This is a trend: more liquidity, more entrance, more ways for people to access crypto. I think for now, the US is moving really ahead of most other countries. People are going to follow very quickly once they see the value. Soon, there will be many more financial tools and Wall Street tooling companies opening crypto trading. Initially, I think most of them are going to start with major tokens. I don't think smaller projects, for example, like Solayer, will benefit as much from this, but the whole crypto industry will be benefited. If Bitcoin goes to all-time highs, probably some capital will go out to other VC-backed projects. From that perspective, it's generally a good thing.”

Aden speculated that crypto-backed lending may follow:

“I think, in addition to more liquidity, I think wider recognition will be received... if some banking starts to trade crypto, then taking crypto as collateral is foreseeable as well. You can take any digital assets as your collateral and get your credit line. We can see it is taking crypto as a collateral or will be the new trend and to make assets more liquid across the whole system, especially stablecoin, also gonna play a like a more important role in the foreseeable future.”

Final Reflections: A New Kind of Market Cycle?

Dr. PR summarized his thesis:

“This is a fundamentally different cycle. Capital is coming from institutions, not individual retail investors. The challenge now is whether that capital will move on-chain. an onchain euphoria? That remains to be seen.”

Douglas concluded with an optimistic perspective:

“I do not believe we’ll see the extreme volatility of past cycles. Regulatory clarity and institutional participation are stabilizing forces. My personal opinion is, right now it's about eight Satoshi for one US cent. I think in my lifetime, we're going to see one Satoshi worth a dollar. Take that for what it's worth. What happens when one Satoshi is one penny, when you've got a million dollars of Bitcoin? I don't think you're going to get that kind of increase and adoption on other crypto, although it depends on your investment...Whether you are a trader or a long-term holder, the most important thing you can do right now is to continue learning and engaging with the space. We are still early in this transformation.”

About SpreadX AI:

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