The capitalization of the altcoin sector decreased by 37.6% compared to the peak reached in early December 2024. Now the indicator is $ 1.1 trillion.
The cryptocurrency market gives signals about the possible beginning of the altcoin season. Experts indicate a combination of technical, inclined and macroeconomic factors that can start the cryptocurrency rally.
Technical indicators
Bitcoin’s dominance (BTC) – the share of cryptocurrency in the total capitalization of cryptorrhniks – approached an important point of turn. On the schedule published by the analyst Mister Crypto in X (formerly), it is clear that the indicator reached the resistance after the formation of an ascending wedge. Usually this pattern is considered a bear signal and often leads to sharp rollings.
Another famous in the crypto community confirmed the conclusions of Mister Crypto. He noted that BTC dominance reached a peak. This will follow the subsequent recession.
The altcoin season index fell to a minimum at 16. This metric compares the dynamics of the largest 50 altcoins and bitcoin. The current indicator indicates that the BTC is ahead of all other assets.
The last time the altcoin season index fell to a similar level in August 2024. Then the cryptocurrencies grew sharply, and by October the index reached 88.
Macroeconomic conditions
Trump’s last decision to defer the introduction of tariffs for 90 days strengthened the trust of the market. Many investors took this pause as a positive signal that can stimulate the influx of capital in altcoins.
The analyst Crypto Rover also noted that another catalyst for altsyzone can be a quantitative softening policy (QE). According to him, when the Central Bank begins to pour money into the economy, cryptocurrencies can increase in price due to an increase in liquidity and optimism of investors.
Alseson will be different
However, in one of the last reports, Kaiko Research analysts emphasized that the altcoin season will never be the same again. According to them, only some projects will show significant growth.
Kaiko Research emphasized that the growing liquidity concentration in several altcoins and bitcoin can violate the traditional procedure for distributing capital.
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Source: Cryptocurrency
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