Originally published on: October 27, 2024
Speculative crypto punters may still have altcoin seasons to look forward to, but according to one analyst, the returns from these seasons are expected to decrease as the crypto market matures.
In a recent post, pseudonymous crypto trader Willy Woo shared his perspective on the future of altcoin seasons, suggesting that they will be less intense compared to the alt bubble of 2017, which marked the rise of initial coin offerings (ICOs) in the crypto space.
While Woo acknowledged that there will still be alt seasons where mid-cap and low-cap cryptocurrencies surge in value after Bitcoin’s price spikes, he cautioned investors that the overall intensity of these seasons will diminish over time.
One key indicator that traders use to gauge the start of an alt season is Bitcoin dominance. Currently standing at 59.31%, some analysts predict that altcoins will start to attract more capital once Bitcoin dominance hits 60%.
Woo also pointed out that the current alt cycle seems focused on “memecoins,” which he described as a whimsical take on the crypto industry, emphasizing the speculative nature of these assets.
Contrary to Woo’s views, other analysts, like Mati Greenspan of Quantum Economics, believe that the upcoming bull run will primarily benefit Bitcoin and its layer 2 solutions, rather than altcoins.
As the crypto market continues to evolve, investors should be cautious about holding long positions in altcoins, as Woo warned that the market cap of altcoins only reflects the successes and not the failures in the space.
While the exact timing of altseasons remains uncertain, some analysts suggest that Bitcoin crossing the $80,000 mark could be a catalyst for increased interest in altcoins.
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