As the market plunges and many alternative cryptocurrencies lose key support levels, some experts suggest that investors need to adjust their expectations for this market cycle and the much-anticipated “alt season.”
Over the past month, the crypto market has shed over $1 trillion in value due to widespread liquidations and persistent selling pressure since the downturn on October 10. This has pushed investor sentiment to its lowest point in months. The early fourth-quarter rally has fizzled out, and most altcoins have given back the gains they made during the third-quarter surge.
Market analysts have shared their views on how the crypto landscape is evolving and what lies ahead. In October, Nic Carter, a crypto investor and partner at Castle Island Ventures, commented on the shift in retail sentiment toward altcoins. He noted that the current bearish mood reflects significant maturation in the sector. Carter explained that crypto has become “boring” because many of the uncertainties that once fueled volatility have been resolved, and the industry has become less risky as a technological foundation. He believes that “crypto natives no longer control the narrative, more serious businesses (which don’t rely on tokens) are emerging, there’s less chaos, and the entire space has grown up.”
In a recent social media thread, the analyst known as Altcoin Sherpa also discussed these changes, stating that the “old cycles” have been “dead” for some time. He described previous cycles as having a euphoric phase, a correction, and a period of accumulation before recovery began. Pointing to the performance of altcoins like Solana between 2020 and 2024, he remarked that “this market environment is gone.” Instead, he believes the market is now in a “hyper-accelerated regime.”
Under this new pattern, the market sees brief uptrends followed by longer downtrends, similar to what has been observed with tokens like BONK since late 2023. Altcoin Sherpa explained, “We have 1-3 months of pumping followed by 2-6 months of downtrend, and then it repeats. There’s no longer a year-long euphoria where everything goes wild—just 1-3 months up, then down. Look at how many cycles BONK has had in a year or two.”
He advised investors not to expect a repeat of 2021 conditions for most altcoins or a traditional “Alt Season” where many tokens surge simultaneously. Instead, he recommended taking advantage of the good times when they come and being prepared for prices to fall sharply within months. “Reframe how you think about altcoin pumps and ‘alt season.’ Coins will still trend downward, but not slowly—it’ll be more like accelerated destruction and carnage,” he detailed.
He also noted that, unlike in the past, altcoins may recover a bit faster and won’t take over a year to hit bottom and accumulate before rising again. However, without a prolonged accumulation phase, he warned that “the overall coins will NOT have as strong of pumps as they used to,” since that buildup period is what fuels powerful rallies. “We aren’t seeing anything close to that anymore,” he concluded.
Frequently Asked Questions
Of course Here is a list of FAQs about an analyst suggesting a reevaluation of altcoins and alt season expectations with clear and concise answers
Beginner Definition Questions
1 What is an altcoin
An altcoin is any cryptocurrency that is not Bitcoin Examples include Ethereum Solana and Cardano
2 What is an alt season
An alt season is a period in the crypto market when altcoins significantly outperform Bitcoin in price growth
3 Why is an analyst suggesting we reevaluate our altcoin investments
The analyst believes that many investors have unrealistic expectations and that not all altcoins will perform well so its crucial to be more selective
4 What does reevaluating expectations mean in simple terms
It means taking a step back to check if your hopes for massive profits are realistic and to make sure youre investing in strong projects not just gambling on hype
Reasoning Market Dynamics
5 Whats the main reason behind this cautious outlook
The main reason is that the market may be too optimistic leading to inflated prices for lowquality projects that could crash when the hype dies down
6 How is this different from previous alt seasons
In past cycles nearly all altcoins would rise Now with thousands of projects success is more likely for those with realworld use and strong technology making it a smarter but riskier market
7 Does this mean there wont be an alt season at all
Not necessarily It suggests that if an alt season happens it will be more selective with only highquality altcoins seeing major gains rather than a broad marketwide surge
8 What role does Bitcoins performance play in this
Bitcoin often sets the trend for the entire crypto market If Bitcoins price is unstable or declining it can limit the potential for a strong sustained alt season
Strategy Practical Tips
9 As a beginner what should I do if I own altcoins
Research the specific coins you own Understand what problem they solve and if they have an active development team Dont just invest based on social media hype
10 What are the signs of a highquality altcoin to look for
Look for a clear purpose a strong and transparent development