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    Is Altcoin Season Dead? As Bitcoin Dominance Jumps 60%

    Story Highlights
    • Analyst Virtual Bacon says altcoin season isnโ€™t over โ€” Bitcoin dominance under 62% and Fedโ€™s liquidity pivot could spark a new altcoin rally.

    • Altcoins may soon surge as market liquidity improves and historic cycles repeat, signaling the strongest phase of the 2025 altcoin season.

    With the talk around altcoin season fading, many traders are wondering if the altcoin season has come to an end. But according to analyst Virtual Bacon, itโ€™s not over yet, in fact, it might just be entering its strongest phase. 

    With Bitcoin dominance still below 62% and the Federal Reserve signaling a liquidity shift, Bacon believes conditions are turning bullish for altcoins once again.

    Hereโ€™s why he believes so?

    Bitcoin Dominance Still in a Downtrend

    At present, Bitcoinโ€™s dominance sits around 60.21%, which means Bitcoin represents that share of the total crypto market cap. Although itโ€™s recovering slightly, Virtual Bacon points out that itโ€™s still below the 50-week simple moving average and remains in a weekly downtrend.ย 

    He believes Bitcoin dominance just needs to stay under 62% for altcoins to continue performing well. He explained that the idea of Bitcoin dominance shooting back to 65% is โ€œunrealisticโ€ given the current setup. 

    For now, the trend still favors altcoins, especially as market liquidity begins to turn positive.

    Fedโ€™s Liquidity Pivot Could Fuel Altcoin Boom

    The analyst connected this outlook to global liquidity trends. The U.S. Federal Reserve recently hinted at a โ€œliquidity pivot,โ€ suggesting it may slow quantitative tightening (QT) and inject more funds into the economy.

    Historically, when liquidity increases, Bitcoin dominance falls, creating ideal conditions for altcoins to rally.

    โ€œIf the Fed stops QT and starts stealth QE, thatโ€™s when dominance rolls over, and altcoins surge.โ€

    Meanwhile, sectors like DeFi, gaming, AI, and tokenization continue to show strong growth, giving investors more reasons to stay bullish on altcoins.

    Altcoin Mirror Historic Patterns

    Supporting Baconโ€™s outlook, fellow analyst CryptooELITES pointed to the marketโ€™s cyclical nature. Since 2019, each major Bitcoin rally has been followed by an altcoin boom, often leading to returns as high as 50x for top projects. 

    altcoin season charts

    With 2025 now mirroring past cycles, many believe the next wave of altcoin growth could already be building.

    Where Alts Stand Now?

    Despite optimistic signals, many altcoins havenโ€™t yet delivered the key breakout. According to the Altcoin Season Index, altcoins are still a long way from full season mode, current levels show only about 41, whereas true altseason typically begins above 75/100.ย 

    This suggests the stage is set, but momentum hasnโ€™t fully flipped yet.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    Is the altcoin season really over in 2025?

    Not yet. Analysts believe altcoin season may just be starting its strongest phase as Bitcoin dominance stays below key levels and liquidity improves.

    What role does Bitcoin dominance play in altcoin performance?

    When Bitcoin dominance falls below 62%, capital often shifts to altcoins, leading to stronger price growth across smaller crypto projects.

    How could the Fedโ€™s liquidity pivot impact altcoins?

    If the Federal Reserve slows tightening or adds liquidity, risk assets like altcoins often rally due to increased market confidence and cash flow.

    Which sectors are leading the next altcoin rally?

    DeFi, gaming, AI, and tokenization projects are showing strong momentum, attracting fresh investor interest during early altseason conditions.

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