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According to Willy Woo, the altseason will arrive, but with less force than in previous years.
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The ‘altseason index’ shows that the market is far from an Altcoin season.
Bitcoin (BTC) dominance currently represents over 59% of the Cryptocurrency market, its highest level in the last 3 years.
This is an important metric that indicates that investors’ money is directed towards BTC and other cryptocurrencies. That is, it reflects that the currency created by Satoshi Nakamoto accounts for a greater proportion of the total capitalization of the digital asset market.
As seen in the following graph of TradingView, the dominance of bitcoin It has been growing since the second half of 2022 and currently represents 59.48%.
Bitcoin dominance from 2020 to October 2024. Source: TradingView.
The increase in demand for BTC generated an upward momentum in its price that, from the end of 2022, increased more than 350% to reach $73,700 in March 2024its all-time high (ATH). At the time of publishing this note, the price of BTC is $68,555.
BTC price in the last 4 years. Fountain: TradingView.
The truth is that the greater dominance of BTC implies complications for altcoins (all cryptocurrencies that are not bitcoin) and reduces the chances of the market witnessing an “altseason” before the end of 2024.
According to the definition of Blockchain Centeran “altseason” occurs when 75% of the 50 largest capitalization cryptocurrencies outperform bitcoin (BTC) over 90 days.
The same site has an ‘altseason index’, a tool that indicates whether the market is going through an altcoin season. At the moment, only 31% of the cryptocurrencies with the largest capitalization performed better than BTC in the last 90 days so an altseason is not on the horizon.
The ‘altseason index’ reflects that there is no altseason on the horizon. Fountain: blockchaincenter.
Are there chances of a new altseason?
Willy Woo, professional cryptocurrency analyst and trader, shared a reflection in his personal X account about altcoins and stated that he stopped talking about them because lost interest in this digital asset class.
Likewise, he considered that the next altseason cycle will be marked by memecoinswhich he describes as “a mockery of the cryptocurrency space.” “It is not intended to be a disruptive technology that changes the world, just an honest bubble casino,” he concluded.
As CriptoNoticias has explained, the memecoins They are digital assets that honor pets, Internet jokes or political figures. They are generally used for financial speculation as they are exposed to large price fluctuations.
In his view, Woo believes that the third cycle will be different from the first two because “retail began to be harmed on a large scale by the alternatives that burst into the general market in 2017.” In addition, he highlighted that “they will be weaker in each cycle starting with the great bubble of 2017.”
As CriptoNoticias already reported, for NYDIGfinancial services company in the cryptocurrency market, The 2017 bull cycle was driven by Ethereum-eth/” target=”_blank” rel=”noreferrer noopener”>Ethereumthanks to its ability to capture market attention with its role as a decentralized application platform (dApps) and a fundraising venue for initial coin offerings (ICO).
The second cycle, meanwhile, was marked by the decentralized finance (DeFi)the NFT-non-fungible/” target=”_blank” rel=”noreferrer noopener”>non-fungible tokens (NFT) and emerging competitors to the Ethereum network.
“The year 2020-21 was a year of ‘innovation’ in DeFi and NFT, but many retailers were again hurt,” Woo concluded.
To conclude his reflection, he recommended to investors who wish to trade altcoins that Do not hold long-term positions unless you have in-depth knowledge of the market.
Clarification: This article was written for informational purposes. It does not constitute an investment recommendation or financial advice.
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