- Altcoin market cap drops to $1.29T, raising speculation about a 2025 rebound.
- Analysts say ETH/BTC breakout could spark a massive altcoin surge next year.
- Altcoin Season Index at 21 hints that altcoins may be gearing up for a reversal.
The altcoin market cap has fallen to $1.29 trillion today, causing intense debate among traders and investors about whether altcoins are positioning for their next major rally phase. Trading volume has also reached $68.86 billion as the cryptocurrency market continues to go through volatile conditions.
Market data from CoinGecko reveals the total altcoin capitalization excluding Bitcoin has contracted from recent highs, yet multiple prominent analysts maintain bullish outlooks for 2025. The current market structure displays patterns that mirror formations observed before previous altcoin surges.
Technical Indicators Build Case for Altcoin Revival
Crypto analyst Ash Crypto has formally declared that “ALTSEASON IS COMING IN 2025,” backing up this prediction with technical charts on several timeframes and cycles of the market. This is based on past trends of the cryptocurrency market in which altcoins follow Bitcoin’s initial price action before matching up with blowout percentage gains that have a tendency to overpower Bitcoin’s gains.
Another analyst, Sercan Yildiz has particularly analyzed ETH/BTC trading pair, since it is the force that will propel the next altcoin boom cycle. As per his analysis, Ethereum needs to regain its strength compared to Bitcoin for any mega bull run to begin in the entire altcoin universe.
Ethereum has been slowly lagging Bitcoin since August 2022. This has created what technical analysts call a compressed spring effect that could trigger widespread altcoin rallies once the downtrend line has a convincing break.
CMC Altcoin Season Index Stands at 21
The CMC Altcoin Season Index currently stands at 21 of 100 points, strongly indicating Bitcoin Season and not Alt Season dynamics. It monitors whether the top 50 largest listed altcoins by market cap have outperformed Bitcoin in the previous 90-day interval.
When the index is above 75, it indicates Alt Season where the altcoins are usually performing better than Bitcoin. Below 25, readings indicate Bitcoin dominance cycles, where the flagship cryptocurrency takes center stage and attracts most of the market’s attention and capital inflows.
The current low reading of 21 shows altcoins have a lot of room to catch up with Bitcoin’s action, perhaps setting up a solid reversal when market forces reverse. Historical experience suggests these low readings are generally followed by the most powerful altcoin rallies when capital departs Bitcoin and flows into other projects in pursuit of higher returns.
Yildiz envisions a compressed four-month mega rally following the critical ETH/BTC breakout and projects 50 to 100 times gains in chosen altcoin projects. Such a beneficial timescale would align with normal altcoin seasons of several months of steady price appreciation preceding exhaustion levels.
Related: ETH, XRP, SOL, TRX: GENIUS Act Lights a Fire Under Altcoins
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