The cryptocurrency market is showing renewed momentum, with altcoins beginning a fresh wave of growth. Despite Bitcoin’s price stability, divergence signals indicate a potential breakout in altcoins.
Divergence Patterns Indicate Growing Altcoin Interest
Analysis prepared by Jamie Coutts, Chief Crypto Analyst at Realvision, shows that the altcoin market cap hit a low in April 2025, yet fewer tokens recorded new 365-day lows. This data signals a potential exhaustion of the downward trend. "Divergence shows downside momentum was exhausted," noted Coutts. This shift may indicate a move from panic selling to accumulation, as buyers slowly re-enter the market.
Macro Trends and ETFs Fuel Altcoin Recovery
According to observations by ASH Crypto, macroeconomic conditions support further altcoin growth. The altcoin market cap is bouncing from $835 billion support, which acted as a base for previous rallies in March and November 2024. Conditions such as a three-month delay on tariffs, easing quantitative tightening, and expectations of rate cuts create a favorable environment for digital assets.
Outlook for Altcoin Market in 2025
Crypto analysts suggest that the pattern resembles previous bull runs, with smaller-cap tokens leading the current bounce. If these trends continue, Q2 2025 could mark the beginning of a wider altcoin rally.
The situation in the altcoin market is becoming increasingly favorable due to changing macroeconomic factors, potentially heralding the start of a new wave of growth ahead.
