Altcoins may recover in the second quarter of 2025 thanks to improved regulations: Sygnum
Sygnum states that better cryptocurrency regulation and user traction could drive the growth of altcoins in the second quarter of 2025, despite Bitcoin's dominance reaching a four-year high.
Altcoins may see a rebound in the second quarter of 2025 as regulations for digital assets continue to improve, according to Swiss bank Sygnum.
In its investment outlook for the second quarter of 2025, Sygnum stated that the sector has seen "dramatically improved" regulations for crypto use cases, laying the groundwork for a strong rally in the altcoin sector in the second quarter. However, it added that "none of the positive developments have been priced in."
In April, Bitcoin's dominance reached its highest level in four years, signaling that crypto investors are rotating their funds into an asset considered relatively safer.
Still, Sygnum noted that regulatory advances in the U.S., such as the creation of a Digital Asset Inventory by President Donald Trump and the progress of regulations for stablecoins, could drive wider adoption of cryptocurrencies.
"We expect that successful protocols in attracting users will outperform the market, and Bitcoin's dominance will decline," wrote Sygnum.