The crypto market situation in 2025 is characterized by increased volatility. Experts suggest that a significant correction may occur before the next altcoin season.
Current Crypto Market State
As of now, the total market capitalization of altcoins outside the top 10 cryptocurrencies has dropped to $277 billion, marking a three-month low and a 77% decrease from its peak values in November 2021.
Potential Crash Before Altseason
Analysts believe that the market is not yet ready for a full altcoin rally. They suggest that Bitcoin may experience a 15-20% pullback. As a result, altcoins could face potential losses:
* Top-tier altcoins may lose 20-30%. * Weaker altcoins may drop 30-40%. * Memecoins may decline 50-60%.
External Factors Affecting Crypto Market
External factors may delay or even prevent the altseason, including:
1. The U.S.-China trade war, adding uncertainty. 2. The SEC's stance on crypto regulation, creating worries among investors. 3. Institutional interest in crypto ETFs.
While an altcoin season is possible, current market conditions suggest that a crypto market crash might come first. Key factors determining the recovery of altcoins include Bitcoin's stability, Ethereum's strength, and market liquidity.
