Compilation: Plain Language Blockchain

Setting aside price trends, some very interesting things are happening in the cryptocurrency space right now. This month, someof the world’s largest asset management companies began purchasing DeFi Tokens:

• BlackRock: After supporting its BUIDL Tokenized fund trading on the Uniswap interface, purchased an undisclosed amount of$UNI Tokens.

• Apollo Global Management: Announced it will purchase up to 90 millionMORPHO Tokens (approximately170 million dollars).

• Citadel Securities and Ark Invest: Invested in LayerZero’s$ZRO Tokens.

This isthe first major traditional financial (TradFi) institution to include DeFi Tokens in its portfolio.

Additionally, just a few weeks ago,Jupiterreceived a35 million dollar JUP investment from ParaFi Capital, and the transaction reachedspot price transactions. This was unheard of a few years ago, as the reality was that most venture capital (VC) firms had previously bought Tokens at huge OTC discounts and immediately sold them after unlocking.

Institutions and venture capitalists are now willing to buy DeFi Tokens at public market prices, which seems to be a very optimistic long-term signal.

Why is this important?

The largest institutions may createhuge buying pressure on specific Tokens, just as has occurred with Bitcoin (BTC) over the past two years. Furthermore, this legitimizes the entire industryand may encourage many retail investors, who are skeptical about altcoins, to start investing.

Along with the recent implementation ofbuyback mechanisms by mainstream dApps, this might be what altcoins need to achieve a massive breakout in the next cycle.

I realize that most people have completely lost trust in altcoins, and usually for good reason. Frankly,most of the Tokens from projects in this space will likely never achieve new all-time highs (ATH).

But at the same time, I am confident that thoseprojects with strong fundamentals may experience astonishing surges in the next bull market cycle, allowing us to witness what a true “altcoin season” is. Thanks to institutional interest, BTC has risen from $16,000 to $124,000 in this cycle. For altcoins, the buying pressure needed to drive their surge is a bit lower.

What should we expect next, and what are my plans?

I believe what we are currently seeing is just the beginning.BlackRock (which just purchased UNI) has historically been an institution that sets the tone for the industry. When it takes action, the rest of the financial sector usually follows.

I expect to see more institutions announce their purchases of altcoins in the coming months.

Even so, I thinkthere is an eagerness to buy altcoins right now. Because before BTC approaches the cycle bottom, even with institutional money flowing in, altcoins are unlikely to perform well. Historically, bottoms typically occur about a year after cycle peaks, around October.

Given the current macro trends, if history repeats itself,this cycle’s BTC bottom could occur in the third quarter of 2026 or early fourth quarter, and I would not be surprised. Based on previous cycles, March 2026 could be a month where cryptocurrencies perform well, but even if there is a rebound, I believe itwon’t last more than a few weeks.

Considering all these factors, my plan is to begin significantly increasing risk exposure to altcoins and BTC in the third quarter. Until then, I plan to only dollar-cost average (DCA) when BTC supports key support levels.

Which altcoins do I plan to buy?

There is still plenty of time to make decisions before the third quarter, but here are the criteria I am currently focusing on:

• Low Price-to-Earnings Ratio (P/E Ratio): Calculated as Token fully diluted valuation (FDV) / annual income (ideallybelow 15).

• High circulation supply with low emission.

• Buyback programs or other stable Token-driven value-creation mechanisms.

• Teams that maintainrapid development delivery even during bear markets.

• True product-market fit (PMF): Users use the product because it actually works well, not just for churning Token rewards.

I am not saying that there are many projects that meet these criteria. But I think these are the ones most likely to attract institutional interest. A few projects on my radar include:Fluid, Jupiter, AAVE, Pendle, Hyperliquid, Lighter, EtherFi, and Sky. However, I will wait until closer to the third quarter to share a specific purchase list.

This cycle has witnessed institutions validating the investment position of BTC. Now, they are verifying the value of altcoins by putting their money on the line.

As cryptocurrency transitions to aninstitution-led era, I believe major institutions buying altcoins are likely to become a major catalyst for the next bull market.The bear market may not be over yet, but I have no doubt that a new bull market cycle will eventually arrive.

Please ensure you have made the right layout.

Article link: https://www.hellobtc.com/kp/du/02/6238.html

Source: https://www.thedefinvestor.com/p/wall-street-starts-buying-altcoins