Ben Simpson explains that the current crypto cycle differs from prior cycles: there are millions more altcoin tokens (much higher supply) while capital allocated to altcoins is lower, so selection is critical. He recommends accumulating high-quality assets (especially layer-1 blockchains), cutting poor projects, being patient, and waiting for Bitcoin to break all-time highs (he cites 130–140k) which he expects will draw retail capital back and trigger an altcoin rally.
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When will altcoin season hit? Is a question I get all the time. Considering this cycle is playing out so differently to previous cycles, how do you actually prepare for it? Well, the biggest thing you need to remember that this cycle there is literally millions more coins than ever before. The supply of altcoins is dramatically higher than previous cycles. Yet the amount of demand, the market cap of altcoins is actually down from previous all time highs. So we've got less capital in altcoins yet way more supply. So the selecting of the different altcoins is so, so paramount. If you are holding altcoins from previous cycles, 90, 95, 98% of those alt are down. So how do you prepare for the next cycle? You need to be in the right narratives. I have cut out so many of the narratives that we believed in the cycle believe they were going to be into fruition at the current time because they're just not playing out the same. Retail investors right now are not. Here it is primarily being driven by ETF volumes, institutional investors. We require bitcoin to grow and blow through all time highs before it attracts the retail investors come back. So how am I getting prepared? Well, this entire year has been a great accumulation period. You want to be able to blow your buy price of the altcoins you have and accumulate good altcoins and be patient. I know that's hard, but if you be patient and you accumulate good assets, I'm primarily looking the layer one space right now. That's where a lot of the larger investors are flowing into. Wait until retail investors come back, which I believe will be. Once bitcoin hits all time highs and blows through 130, 140,000 then it'll attract the retail investors. They will then go and buy the different altcoins will drive an altcoin rally. But you've got to be selective. So many coins are not performing anymore. You've got to cut the bad ones and get prepared for the new ones. By accumulating during this period and being patient.
