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Popular crypto analyst Willy Woo says that the altcoin market cap “is like the cricket bat that has had 10 new handles and 10 new blades.”
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Crypto altcoin seasons will probably keep coming, much to the delight of speculative crypto punters, but the intensity of returns will taper off as the market matures, according to a crypto analyst.
“Alt seasons will be weaker each cycle on from the great 2017 alt bubble,” pseudonymous crypto trader Willy Woo opined in an Oct. 26 X post, referencing the year when the “boom” of initial coin offerings (ICOs) — a way to raise capital for a project by selling cryptocurrencies — began.
Altcoin seasons will continue as investors chase higher-risk returns
Willy Woo clarified he’s not saying there won’t be alt seasons, noting that there will “certainly” be mid-cap and low-cap cryptocurrencies “pumping” after Bitcoin’s (BTC) price surges, as “investors chase returns higher up on the risk curve.”
Traders usually watch for signs that Bitcoin dominance has peaked as a hint to start rotating capital into altcoins.
Bitcoin dominance is 59.31% at the time of publication. Source: TradingView
According to TradingView data, Bitcoin’s dominance is 59.31%, which is just shy of some analysts’ recent predictions of 60%, which they believe is the point where capital will start to flow into altcoins.
Willy Woo claimed that the current alt cycle is shaping to be “about memecoins,” which he opined is a “piss-take on the crypto space.”
The comments oppose those made by Mati Greenspan, the founder of Quantum Economics, who recently told Cointelegraph that the “upcoming bull run will be all about Bitcoin and its layer 2s.”
Willy Woo warns against HODLing altcoins
Willy Woo stated that there is “no pretence that it’s trying to be disruptive world-changing tech, just an honest bubble casino,” urging his 1.1 million followers to steer clear of 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 also warned that the alt market cap reflects the “winners,” not the failed tokens.
“Also remember alt market cap is 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,” Willy Woo stated.
Related: Bitcoin ETF demand hits 6-month high while futures volumes remain ‘subdued’
Many crypto analysts have been speculating when the market can finally declare that altseason has arrived.
While traders often believe Bitcoin must reclaim its all-time high — which is currently $73,679, reached in March — some analysts argue that alone won’t be enough to trigger altseason this time.
Crypto investment firm Hashkey Capital analysts believe “altcoin season is more probable when Bitcoin’s price surpasses $80,000.”
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This article first appeared at Cointelegraph.com News
