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Analyst predicts weaker altcoin seasons amid market maturity

Analyst predicts weaker altcoin seasons amid market maturity

GrafaGrafa2024/10/28 20:37
By:Mahathir Bayena

Popular crypto analyst Willy Woo recently commented on the evolving landscape of the altcoin market, predicting that future altcoin seasons will be weaker as the market matures. 

In an October 26 post on X, Woo remarked, “Alt seasons will be weaker each cycle on from the great 2017 alt bubble,” referencing the explosive growth driven by initial coin offerings (ICOs) that year. 

Woo clarified that altcoin rallies aren’t over, but the scale of returns may diminish. 

He explained that investors will continue to seek riskier assets for higher returns following Bitcoin’s (CRYPTO:BTC) price surges. 

“There will certainly be mid-cap and low-cap cryptocurrencies ‘pumping’ as investors chase returns higher up on the risk curve,” he noted. 

Woo’s remarks align with a common trading strategy where investors rotate capital into altcoins when Bitcoin’s dominance appears to peak. 

Currently, Bitcoin’s dominance stands at 59.31%, just shy of analysts’ predictions of 60%, which is seen as a potential trigger for altcoin investments. 

Woo, however, cautioned traders about holding long positions on altcoins. 

“Don’t ever hodl them unless you’re so knowledgeable that you’re an effective insider because alts are an insiders game just like the casino where the house will eventually win,” he advised. 

Woo also criticised the current altcoin cycle, stating that it seems focused on “memecoins,” which he described as a “piss-take on the crypto space.” 

He compared the altcoin market cap to a cricket bat, saying, “It’s like the cricket bat that has had 10 new handles and 10 new blades; it’s the sum of all the new winners… losers don’t count to the market cap.” 

Despite his cautionary tone, Woo acknowledged that there will still be opportunities in the altcoin market, though their impact may lessen over time. 

Other analysts like Mati Greenspan believe the upcoming bull run will focus more on Bitcoin and its layer-2 solutions, differing from Woo’s outlook on altcoin potential.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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