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As the crypto market takes a downturn and many altcoins lose their key positions, some experts suggest it’s time for investors to rethink what “alt season” really means this cycle.
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The Old Crypto Cycle is Out – Analyst
In just the past month, the crypto market has lost over $1 trillion in market cap! This drop follows a wave of liquidations and strong selling pressure since October 10, leaving investor confidence at a record low.
As things have cooled off, the excitement from the early Q4 rally has vanished, and many altcoins have slipped back to pre-Q3 levels. Analysts are sharing their thoughts on the evolving crypto landscape and what the future might hold.
Recently, Nic Carter, a well-known crypto investor and partner at Castle Island Ventures, pointed out that retail sentiment has shifted regarding altcoins. According to NewsBTC, he highlighted that the bearish vibe means crypto is more mature than ever.
Carter noted that crypto feels “boring” now because many uncertainties that once caused wild price swings have been cleared up, making the industry more stable and reliable.
He believes that “crypto natives” are no longer at the forefront of the narrative; serious businesses are emerging that don’t even need tokens, and the “chaos” is fading away as the whole sector matures.
In a recent discussion on X, Altcoin Sherpa also shared his insights about the market, asserting that the “old cycles” have been “dead” for a while. He remarked that past cycles had distinct phases: an euphoria phase, a correction, and then time to accumulate before bouncing back.
He took a closer look at how altcoins like Solana (SOL) performed from 2020 to 2024, stating that “this market environment is no more.” Now, he believes we’re in a “hyper-accelerated regime.”
Altcoins in a ‘Hyper-Accelerated Regime’
In this new stage, the market experiences quick bursts of growth followed by mid-term declines, similar to how altcoins like BONK have behaved since late 2023. Altcoin Sherpa elaborated:
We see 1-3 months of gains followed by 2-6 months of downturns — then it starts all over again. The days of wild euphoria lasting a whole year are gone. Just quick pumps and then a drop. Look at how many cycles BONK has had in a year or two.
The analyst warned that we shouldn’t expect 2021-style conditions for most altcoins or a traditional “Alt Season” where multiple tokens skyrocket simultaneously. He urged investors to make the most of the good times while staying alert, as “prices can still tumble in three months.”
“Reframe how you think about alt pumps and ‘alt season’. Coins will continue to decline, but not in a slow bleed. Instead, it’s more of rapid declines and chaos,” Altcoin Sherpa stressed.
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He also pointed out that, unlike in the past, altcoins are likely to recover “a bit quicker than they used to,” and it won’t take over a year to hit bottom and start climbing again.
However, Sherpa maintained that the absence of an accumulation phase means altcoins probably won’t experience the same explosive growth as before, since that phase is what used to fuel the strong rallies. “We aren’t seeing anything close to that anymore,” he wrapped up.
Featured Image from Unsplash.com, Chart from TradingView.com
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