Calm before the storm: Why 2025 could be the year of altcoins
When does the altcoin season start?
This year may turn out to be a favorable one for cryptocurrency holders. Although the state of the digital asset market seems bleak, numerous factors suggest that the altcoin season could soon begin.
Due to various political and economic factors, the crypto market is currently experiencing a downturn. Bitcoin's price has significantly pulled back from its all-time highs, and the CMC Altcoin Season Index is now at its lowest level in the last three months.
Altcoin Season Index. Source: CoinMarketCap
Retail investors' sentiment is "terrible right now", as many altcoins are underperforming, according to Matt Hougan, Chief Investment Officer at Bitwise Asset Management. He noted that only top cryptocurrencies remain in the "green zone", while most projects are facing challenges.
At the same time, the investor urges caution, as he sees "early signs of an altcoin bull market."
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Analyst forecasts
Despite the significant market correction, altcoins could show remarkable growth in 2025, according to Ki Young Ju, founder of the CryptoQuant analytics service.
The analyst believes that the most promising startups will be those that can attract investors and generate stable revenue.
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Another well-known analyst, Miles Deutscher, agrees and attributes the delayed altcoin season to the Pump.fun platform. According to him, the speculative capital that was previously directed into the top 200 cryptocurrencies is now flowing into low-liquidity assets.
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Drivers for altcoin growth
There are several factors that could soon trigger a bullish market for altcoins.
First, the success of spot Bitcoin ETFs has demonstrated the potential of this financial instrument. Currently, Ethereum is the only altcoin with an approved spot ETF, but the U.S. Securities and Exchange Commission (SEC) is reviewing applications for Solana (SOL), XRP (Ripple), Litecoin (LTC), Hedera Hashgraph (HBAR), and others.
Additionally, a significant factor is a statement from U.S. President Donald Trump, who announced that Ethereum, Solana, XRP, and Cardano will be included in the future national crypto reserve, alongside Bitcoin.
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Against this backdrop, the SEC is actively withdrawing lawsuits and closing investigations against several crypto companies, including Consensys, Coinbase, Gemini, and Uniswap. This is also a positive signal for altcoin investors.
When will altcoin season begin?
Despite current market difficulties, altcoins could see strong growth in 2025 due to a combination of macroeconomic factors and increasing institutional interest.
One of the key catalysts for an altcoin bull market could be the approval of new crypto spot ETFs, greater government interest in digital assets, and reduced regulatory pressure.
However, historically, all cryptocurrencies follow Bitcoin. This is because capital first flows into reliable assets with strong fundamentals. Therefore, altseason is most likely to begin a few months after Bitcoin reaches a new all-time high.
