Altcoin seasons will “weaken” moving forward, says the analyst

Crypto altcoin seasons keep coming, much to the delight of speculative cryptocurrency punters, but the strength of returns will diminish as the market matures, a crypto analyst said.

“Alt seasons every cycle will be weaker than the great 2017 alt bubble,” opined crypto trader Willie Woo in an Oct. 26 X post, referring to the year when the “boom” of initial coin offerings (ICOs) — selling cryptocurrencies to raise capital for a project — began. .

Altcoin seasons continue as investors chase higher risk returns

Willie Wo is not saying there won't be alt periods, noting that mid-cap and low-cap cryptocurrencies will definitely be “pumped” after Bitcoin's (BTC) price rise, noting that “investors are chasing the risk curve.”

Traders look to signs that Bitcoin's dominance has peaked as a cue to start shifting capital into altcoins.

According to TradingView data, Bitcoin's dominance is 59.31%, which some analysts believe is just shy of the 60% forecast recently, which is the point at which capital will begin to flow into altcoins.

Willy Woo says the current alt cycle is shaping up to be “about memecoins,” which he says is “a big step in the crypto space.”

The comments contradict what Quantum Economics founder Matty Greenspan recently told Cointelegraph that “the coming bull run will be all about Bitcoin and Layer 2s.”

Willy Woo warns against HODLing altcoins

Willy Wu urged his 1.1 million followers to stay away from long positions in altcoins, saying, “There's no pretense that it's trying to be a world-changing technology.”

“You don't know them unless you're very knowledgeable, and you're an effective insider because alts are an insider's game, just like any game of poker where the house eventually wins.”

He also warned that the price of the alt market reflects “winners”, not failed signals.

“Also remember that the alt market value is like a cricket bat with 10 new handles and 10 new blades, that's the sum of the new wins.

Related: Bitcoin ETF demand hits 6-month high, futures remain ‘beaten'

Many crypto analysts have speculated when the market could finally announce the arrival of the altseason.

Although traders often believe that Bitcoin needs to recover the maximum – it is currently $ 73,679, reached in March – some analysts argue that the altseason alone will not be enough to trigger this time.

Analysts at crypto investment firm Hashkey Capital believe that “altcoin season may be over when bitcoin price exceeds $80,000.”

Magazine: Fake Rabi Wallet Scam Linked to Dubai Crypto CEO and Many Other Victims