Altcoin seasons are likely to continue to please speculators, but the intensity of returns will decline as the crypto market matures, according to analyst Willy Woo.
“This cycle is markedly different from the others. This is the third cycle since retail began to scale with altcoins that burst into the mainstream in 2017. 2020-2021 were the ‘innovations’ of DeFi and NFTs […] and this third cycle is all about meme coins that make fun of the crypto industry. No pretense that they’re trying to be revolutionary, world-changing technology, just honest casino,” he wrote.
According to Wu, the dominance chart looks like a decade-long crash and recovery, like a “COVID crash in slow motion.” With each season, the altcoin rally will be weaker, the expert added.
"Trade, of course, if you want. Never HODL them unless you are so knowledgeable that you are an effective insider, because altcoins are an insider game, like a casino, where the last one wins in the end. But you already know that," the analyst emphasized.
In May, Wu predicted that Bitcoin would be worth $1 million by 2035. That would be the “fair price” of the first cryptocurrency by that time, he noted.
Let us recall that analysts at Hashkey Capital believe that for the altcoin season to begin, it is not enough for digital gold to simply exceed its historical maximum. According to their estimates, Bitcoin must reach $80,000 for this to happen.
Bitwise named the conditions for the growth of the first cryptocurrency above this mark by the end of the year. Among them are Donald Trump's victory in the US presidential election, a 50 bp reduction in the Fed rate with new incentives from China, and the absence of serious surprises in the industry.
