Since March, the altcoin market cap has been falling, making many investors excited for the long-awaited “Altcoin season”. With the market showing signs of a shift, prominent analyst Crypto Banter’s latest insights provide hints about when this rally might kick off, focusing on USDT dominance (USDT.D) and Bitcoin dominance (BTC.D).
What does the future hold for altcoins? Here’s what to expect.
Crypto Banter notes that daily trading volumes are starting to rise, but the market needs to break through the $50-60 million range to maintain this momentum. Currently, uncertainties around major events, like upcoming elections, are causing large investors to be cautious.
Once these uncertainties clear up, cash-holding investors may return to the market, which could lower USDT dominance (USDT.D) as money flows back into cryptocurrencies. If USDT.D drops to around 3%, it could signal that more money is entering the market, setting the stage for a significant rally.
Understanding the Bitcoin Dominance Cycle
Banter also points out that Bitcoin dominance (BTC.D) follows a cycle where Bitcoin’s market share rises and then falls, creating opportunities for altcoins to grow. Right now, BTC.D is nearing a peak, and Banter predicts that Bitcoin’s dominance may decrease over the next 300-350 days, potentially concluding around August 2025.
If this trend continues, it could lead to a strong rally for altcoins as funds shift from Bitcoin to other cryptocurrencies.
Adding to the anticipation, the total market cap for altcoins (excluding Bitcoin) has been forming a bullish “falling wedge” pattern. Historically, this pattern often breaks to the upside, which could result in a substantial increase in altcoin prices. If the current trend aligns with past movements, the altcoin market cap could experience a considerable rally, pushing it toward new highs.
Banter warns that many investors miss the start of “altseason” by waiting until altcoin prices have already surged. He suggests that now might be an ideal time to accumulate altcoins, particularly those performing well against Bitcoin.
Ethereum (ETH) could be a key player in the upcoming altseason. Although ETH has struggled recently, it is currently sitting at its 200-week moving average, a crucial support level. This position may indicate a reaccumulation phase, making ETH one of the top altcoins to watch for potential growth in the next market wave.
With USDT.D, BTC.D, and various market cycles aligning, all signs suggest that an altseason may be on the horizon, possibly peaking by late 2025.
Is now the time to diversify your crypto portfolio? Tell us what you think.
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