Why does altcoin season need to exist?

I’ve been studying the flow of liquidity in the crypto market. From what I understand, money flows from institutional investors to bitcoin, and when Bitcoin’s price rises, they use their Bitcoin as collateral to take out loans, which they then use to invest in altcoins, causing altcoin prices to rise and then attracting retail investors.

What I don’t seem to understand is that there is already huge amounts of liquidity in the memecoin sector, and institutions do not need to participate in that for prices to rise rapidly. Why can’t the same be done in altcoins? Are memecoins taking away too much liquidity from the altcoin market?

In the stock market, when investors feel that stocks are too risky, they take money out of stocks and put it into bonds. But that almost hardly happens, and the stock market always has a decent amount of liquidity (although you can argue that it’s because of institutions only).

I just wanna know why we can’t always just have altcoin season. Is the solution for that to take away liquidity from memecoins, as well as reduce the number of shitty altcoins in the market? (there’s a huge market dilution right now).

Then even if the crypto market gets more volatile, there can be safer altcoins to invest into during that time, instead of going to cash out or putting it in bitcoin.