While the leading cryptocurrency Bitcoin (BTC) has shown tremendous performance throughout the year, altcoins have not been able to perform as expected.
While investors are wondering when altcoins will explode, veteran analyst Willy Woo said that altcoin gains will fade as the crypto market matures.
Willy Woo, who made an assessment of the altcoin season from his X account, stated in his X post that altcoin rallies will become less explosive with each cycle.
Saying that the current cycle is different from the previous ones, Woo stated that the focus of this cycle has shifted away from innovations such as decentralized finance (DeFi) and towards memecoins.
Arguing that this was a wrong step, Woo said that there will be altcoin rallies but they will not be as enthusiastic as the previous ones.
“I'm not saying there won't be alt seasons. Alt seasons will continue as investors chase higher risk returns.
Mid and small cap cryptocurrencies will definitely rise in the wake of Bitcoin. However, some mid and small cap altcoins may still experience price fluctuations after Bitcoin rallies.
It's just that alt seasons will get weaker with each cycle.”
The analyst also warned investors about long-term HODL, stating that taking long-term positions in the altcoin market is risky and argued that only people with a lot of effective knowledge should HODL.
At this point, Woo, who likened the altcoin market to a casino, said, “Of course, trade altcoins. But unless you are a very knowledgeable and influential insider, never hold them because altcoins are an insider's game, like a casino, and in the end, the winners win.”
*This is not investment advice.
