The only alt season that occurred when there was any significant amount of capital involved in crypto was in 2021 and it was fuelled by low/zero interest rates and stimulus cheques to people confined to their homes with nothing else to do. The former conditions may occur but not in the same circumstances, instead as part of a serious recession that will probably keep VCs and wealthy investors out of high risk assets for some years, and nothing is higher risk than small caps.
The latter isn’t happening again full stop.
Tulip mania is over and we are basically the stragglers holding onto our dying tulips desperately hoping that the mania will return again. It probably won’t.
There is a very very outside chance that the planets align and retail returns to small caps and this encourages VCs and institutions to also dabble, but you’re pretty much on the same level of betting on horses and buying lottery tickets at that point.
I hate to admit it because 3-4 years ago I bet heavily on small caps I felt would do well in another alt season but I always knew it would be a race to generate that alt season prior to the next recession nd the end of this business cycle. Now we’re at the end of the cycle and the recession is here and we did not have an alt season. Next cycle there will probably be some other new ultra risk on asset to go nuts for.
Sorry everyone.
submitted by /u/LaCaipirinha
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