Altcoin seasons, which occur periodically in the cryptocurrency market, continue to be one of the events that attract great interest from investors. However, it is predicted that the returns of these seasons may decrease with the maturation of the market. The predictions of well-known analysts of the crypto world, such as Willy Woo and Il Capo of Crypto, present a picture that investors should follow carefully in this regard.
Is the power of altcoin seasons decreasing?
According to crypto analyst Willy Woo’s post dated October 26, altcoin seasons are thought to be increasingly weak. Woo suggests that the big gains experienced with the first ICO boom that started in 2017 will no longer be as strong as before. Nevertheless, it is expected that cryptocurrencies with medium and low market values will also rise with the increases in Bitcoin’s value. Woo emphasizes that investors turn to altcoins especially when they want to take higher risks and that this situation will continue.
Bitcoin’s dominance rate over the market is considered a critical indicator for the beginning of altcoin seasons. According to TradingView data, Bitcoin’s market dominance is at 59.31 percent. According to some analysts, if this rate reaches 60 percent, it could be a sign that capital will start to flow from Bitcoin to altcoins. According to Woo, the current altcoin cycle will be shaped especially around meme coins, and this situation will come with criticism against the crypto world. Woo states that meme coins function as a “bubble casino” rather than a serious investment tool.
Il Capo shared the “black swan” scenario
Another analyst known for his pessimistic predictions in the cryptocurrency world, il Capo of Crypto, states that the upcoming US elections could be a source of great uncertainty in the crypto market. According to the analyst, a “black swan” event that may occur before the elections, that is, a large unpredictable shock wave, could lead to a major decline, especially in altcoins. In such a scenario, altcoins are expected to lose 35 percent, large-cap cryptocurrencies 25 percent to 35 percent, and small-cap cryptocurrencies 40 percent to 60 percent.
Despite this scenario that creates uncertainty in the market, Il Capo shares some hopeful thoughts for long-term investors. The analyst thinks that such a decline could be recorded as a final pullback for the start of the altcoin season. In addition, il Capo states that investors should be prepared for such events instead of being afraid, and that they can see declines as opportunities for new entry into the crypto market. The analyst, who once only made predictions for the bear market, changed his views after the last bull rally. Because he announced that he invested in various altcoins.
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