Altcoins with tangible real-world use and adoption will lead the next altcoin season, Bitwise investment chief Matt Hougan said. He argued the broad, euphoric cycles that lifted almost every cryptocurrency are likely over.
“I think that game is over. I think we’ll see a non-traditional altcoin season,” Hougan said in a YouTube interview on Wednesday, adding that future cycles will reward assets with practical traction and applications. “I don’t think we’ll see the sort of rising tide lifts all buckets where you rotate from Bitcoin to ETH to DeFi to NFT pictures of rocks.”
Hougan suggested the market may “rerate” specific tokens, especially those connected to what he called “huge businesses,” resulting in a more differentiated altcoin season than in past cycles.
Traditionally, traders expect Bitcoin (BTC) to hit new highs first, followed by capital rotating into Ether (ETH) and then into altcoins, sparking an altcoin season. On Bitcoin’s recent price action, Hougan said it was “starting to bottom and trend higher.” At the time of publication, Bitcoin traded around $70,237, according to CoinMarketCap.
The question of whether an altcoin season is imminent remains debated. Crypto analyst Matthew Hyland argued in November that traders should expect an altcoin season soon, pointing to a weakening Bitcoin dominance chart. By contrast, BitMEX co-founder Arthur Hayes said in December that “there is always an altcoin season happening,” suggesting that critics simply missed the winners.
Crypto sentiment firm Santiment reported that social media mentions of altcoins hit a two-year low, while other indicators show investors focusing on Bitcoin.
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