Renowned crypto analyst Willy Woo suggests that while altcoin seasons will continue to emerge, their intensity and returns are likely to taper off with each market cycle as the crypto space matures. In a recent statement dated October 26, Woo highlights the initial coin offering (ICO) boom of 2017 as a pivotal period for explosive altcoin growth, a cycle he believes won’t be replicated at the same magnitude.
Altcoin speculation, Woo argues, will persist even though the returns may reduce. He forecasts that mid-cap and low-cap cryptocurrencies could still experience price surges following Bitcoin rallies, as investors pursue high-risk, high-reward opportunities. Currently, Bitcoin dominance sits at approximately 59.31%, which often signifies a shift in market sentiment when it peaks, prompting traders to redirect their investments into altcoins.
Woo also suggests that the ongoing altcoin cycle is predominantly driven by memecoins. In contrast to previous cycles that centered around technological disruption, Woo posits that memecoins act as speculative assets. He urges investors to exercise caution and warns against long-term holdings in altcoins.
Is the next bull run aiming at Bitcoin and Layer 2 solutions? While Woo anticipates memecoin-driven surges, other analysts, including Mati Greenspan of Quantum Economics, assert that the forthcoming bull run will primarily focus on Bitcoin and its layer-2 scaling solutions, dismissing altcoins. Woo reinforces the notion of caution, indicating that investments in altcoins often favor insiders and resemble a casino, where ultimately the house prevails.
Additionally, some crypto analysts speculate that an altseason might only occur if Bitcoin surpasses its previous all-time high of $73,679. Analysts from Hashkey Capital suggest that an altcoin season is more probable if Bitcoin’s price reaches $80,000, emphasizing the market's cautious stance towards altcoins within today’s maturing crypto ecosystem..