According to Cointelegraph: Renowned crypto analyst Willy Woo suggests that while altcoin seasons will continue to emerge, their intensity and returns will likely taper off with each market cycle as the crypto space matures. Woo’s Oct. 26 statement points to the initial coin offering (ICO) boom of 2017 as a peak period for explosive altcoin growth, a cycle he believes won’t be repeated at the same level.
Altcoin Speculation Will Persist Despite Reduced Returns
According to Woo, mid-cap and low-cap cryptocurrencies may still see price surges after Bitcoin rallies, as investors seek high-risk, high-reward opportunities. Bitcoin dominance, which currently stands at around 59.31%, often indicates a shift in market sentiment when it peaks, prompting traders to move capital into altcoins.
This current altcoin cycle, Woo suggests, is largely driven by memecoins. Unlike past cycles focused on technological disruption, Woo argues that memecoins serve as speculative assets, urging caution among investors and warning against long-term holds on altcoins.
Is the Next Bull Run Focused on Bitcoin and Layer 2 Solutions?
While Woo foresees memecoin-driven rallies, other analysts like Mati Greenspan of Quantum Economics contend that the upcoming bull run will center on Bitcoin and its layer-2 scaling solutions, not altcoins. Woo, however, encourages caution, warning that altcoin investments favor insiders and resemble a casino where the house ultimately prevails.
Altseason May Not Happen Until Bitcoin Crosses $80,000
Some crypto analysts predict altseason will only arrive if Bitcoin surpasses its previous all-time high of $73,679. Analysts at Hashkey Capital even argue that altcoin season is more likely if Bitcoin’s price reaches $80,000, underscoring the market’s cautious sentiment toward altcoins in today’s maturing crypto landscape.
