Altcoins: Why They’ve Stalled and What Could Spark A Big Rally Soon

• Altcoin stagnation is linked to macroeconomic conditions, not project fundamentals.
• Market cycles are shifting away from the four-year pattern due to rising institutional influence.
• Ethereum shows strength amid liquidity recovery, possibly signaling early bull market momentum.

Altcoins have been in a prolonged state of stagnation, a situation crypto analyst Michaël van de Poppe addressed in a new video shared on X platform, on June 4, 2025. He argues that broader macroeconomic conditions, rather than any flaws within individual crypto projects, are the main force keeping altcoin prices from moving upwards.

Altcoins Weaker Than Fundamentals Suggest; Is Business Cycle Nearing Its Low?

Van de Poppe explained that most altcoins continue to post weak returns and lower lows, despite strong fundamental development across many projects. He noted that this underperformance is not a reflection of the assets themselves but rather the result of external market conditions suppressing risk-on investments.

This trend of altcoin underperformance, Van de Poppe notes, has actually been in play for several years. Yet, historical patterns suggest that such stagnation often occurs at the lowest point of the business cycle—just before major bullish reversals.

According to Van de Poppe, global markets are nearing the bottom of the current business cycle. Sentiment and conviction remain at their lowest levels, not only in crypto but across the broader economy. He compared the current environment to July 2016 and January 2020—two periods that preceded large crypto rallies.

Liquidity and Macro Now Key Drivers for Crypto Cycles

In his analysis, which he titled “The Reason Why Altcoins Don’t Move!”, Van de Poppe makes the case that the once-common belief in a strict four-year crypto cycle is becoming less relevant. Instead, he said, liquidity and macroeconomic indicators now play a more significant role in driving market movements.

Institutional Impact Extends the Cycle

Van de Poppe also pointed to growing institutional involvement as a reason for the lengthening of market cycles. As more institutional capital enters crypto markets, price movements are becoming more dependent on broader economic flows rather than the retail-driven four-year pattern.

He stated that the current market environment is not the start of a bear market. Instead, it could mark the beginning of the next bull phase, as the cycle prepares to turn upward.

Ethereum Correlation With Global Liquidity

Van de Poppe highlighted Ethereum’s recent bottom in April and its ongoing recovery. He also noted a correlation between Ethereum’s price and the Chinese renminbi, which has been rising. As liquidity returns to the market, Ethereum may continue to show strength ahead of Bitcoin.

He pointed out that Bitcoin remains in a consolidation phase, while Ethereum appears to be gaining momentum. This divergence may indicate a shift in capital allocation within the crypto space.

Analyst Sees Low-Risk Entry for Altcoins Before Potential Upswing

Concluding his thoughts, Van de Poppe suggested that current market conditions present a relatively low-risk environment for investing in altcoins. During the bottom of the business cycle, downside risks tend to be minimal. As macroeconomic uncertainty begins to ease, he expects stronger price action across altcoins.

He cited historical data showing Ethereum gains of 1,900% in 2017 and 450% in 2021 during similar market transitions. While macro pressure remains a key factor now, any reversal in sentiment could open the door for substantial altcoin growth.