Altseason or Just Another Mirage? Crypto Experts Clash Over Altcoin Market’s 2025 Trajectory
Altcoins are flashing green—but is this rally built to last?
As Bitcoin dominance wobbles, traders are piling into Ethereum, Solana, and other altcoins. Some analysts point to surging DeFi TVL and NFT volumes as proof of sustainable momentum. Others warn of leveraged positions hitting dangerous levels.
The great altcoin divide
Bull case: On-chain data shows whales accumulating ETH at $3,800—a key psychological level. Layer-2 networks like Arbitrum and Optimism are processing record transactions. 'This isn’t 2021’s mindless speculation,' argues one hedge fund manager.
Bear case: Exchange reserves for major alts are climbing—typically a prelude to sell pressure. Meme coin volumes now exceed 30% of total crypto trades. 'When Dogecoin leads, pain follows,' quips a skeptical quant.
The bottom line? Either we’re witnessing the start of a historic altseason… or Wall Street’s latest 'greater fool' setup. Place your bets—just maybe keep some dry powder for when the 'experts' are inevitably wrong again.
Altcoin Rally Lacks Support
Matrixport warned that it may once again fizzle out. Analyst Markus Thielen noted that, despite recurring calls for a new bull market, only two brief altcoin surges have occurred in recent memory.
In fact, the most notable was in Q4 2024. These rallies, which saw temporary spikes in funding rates, lacked underlying fundamental support, which led to rapid reversals.
As such, Thielen argued the current MOVE mirrors previous patterns, with declining funding rates indicating that enthusiasm has already faded. The analyst added that the altcoin market remains structurally weak, and investors hoping for steady upside may be disappointed yet again.
This comes as Bitcoin’s dominance briefly slipped NEAR 60% which has historically preceded full altcoin seasons, where these tokens outperform BTC significantly. Certain data also pointed toward capital rotation, which further strengthened the narratives of an altseason.
Conflicting Signals
SwissBlock’s “Altcoin Vector” reported that the altcoin market is transitioning toward a potential breakout zone. It said that “smart capital” is rotating into positions before retail traders notice the shift.
They highlighted that while momentum and market structure are improving, this is not yet a breakout; instead, it’s an early stage where informed investors begin pre-positioning for a possible future rally. This phase can offer strategic entry opportunities before broader market sentiment turns bullish and prices accelerate.
Another market watcher argued that an altseason may soon begin based on USDT dominance, which has been stuck in a descending triangle pattern for nearly two years and now appears close to breaking down. A decline in USDT dominance typically suggests that traders are moving capital out of stablecoins and into riskier assets like altcoins, thereby fueling broad altcoin rallies.
As such, the market action seen so far has only been a warm-up, and a decisive breakdown in USDT dominance WOULD trigger a strong shift of liquidity into altcoins, which could potentially spark a major altcoin bull run.
