Altseason, the period of altcoin growth during Bitcoin's dominance decline, is sparking discussions in the crypto market once again. This year, the situation may unfold differently than in previous years.
Signals for Altseason
The recent drop in Bitcoin's dominance below 60% has caught the attention of traders, who are once again proclaiming the start of an altseason. Data has shown that interest in altcoins has reached its highest levels in the past year. Ethereum, in particular, has risen over 60% in the past year, which typically signals a rise in altcoins.
Changes in Altseason Rules
Analysts predict that the current altseason will differ from previous ones. Unlike the mass rise of all altcoins, this cycle will see a more selective approach where only certain altcoins will see significant growth. One reason for this is the oversupply of new tokens in the market, which dilutes potential gains.
A More Selective Approach to Altcoins
Institutions and large investors are showing interest in select assets, which might also impact the dynamics of the altseason. The introduction of exchange-traded funds (ETFs) for Bitcoin and Ethereum has provided a way for pension funds and banks to invest in cryptocurrencies, but the focus is on highly liquid and regulated assets.
Given the current market conditions, the altseason in 2025 may be more challenging to predict, and investors are advised to closely monitor the situation while considering potential changes in the market.
