The cryptocurrency market is buzzing again, with one clear indicator being the Total 3 chart, which tracks the total market cap of all cryptocurrencies excluding Bitcoin and Ethereum. Analysts suggest that Total 3 is beginning to break out, signaling that Alt Season 2025 could be near.
Overview of Total 3 Indicator
The Total 3 chart indicates a potential start of Alt Season. Breakouts in this indicator have historically preceded sharp rises in altcoins, as capital shifts out of Bitcoin and Ethereum into smaller assets seeking higher returns.
Rate Cuts as a Catalyst
The Federal Reserve is expected to cut rates to zero, potentially leading to increased liquidity in the markets. Cheaper borrowing enhances investors' risk appetite, particularly in high-risk sectors like altcoins. Historically, lower rates have correlated with strong market rallies.
Expectations for the Upcoming Quarters
Combining a breakout in Total 3 with impending rate cuts creates favorable conditions for potential growth in altcoins over the next 1-2 quarters. Similar situations in 2021 and 2017 led to historic altcoin rallies.
Considering the current factors like rate cuts and positive trends in Total 3, many traders expect significant altcoin growth in 2025.
