Bitcoin's rise beyond $111,000 and declining dominance signal the start of a possible record altseason in 2025. Analysts predict that the momentum of altcoins will increase after the halving, as Bitcoin stabilizes and capital rotates towards altcoins. Despite the recent low levels of the Altcoin Season Index, strong crypto returns in the second quarter point to imminent breakouts for altcoins.
Bitcoin has reached a new all-time high, leading analysts to predict that the largest altseason in history could be on the horizon. Their arguments are based on capital flow cycles and the historical behavior of the crypto market. Analysts believe that the excitement for Bitcoin will soon extend to altcoins. This article will break down the key factors behind that belief.
Analyst Wimar.X highlights a key factor. Historically, each altseason tends to begin around 380 days after a Bitcoin halving event.
The most recent halving occurred in April 2024. Based on this timeline, the altseason could begin as early as May 2025. 'The largest altseason in history begins on May 25... The market capitalization of altcoins will reach 15 trillion dollars in this cycle,' predicts Wimar.X.
During this time, Bitcoin's dominance (BTC.D) tends to fall. It is then that capital begins to flow from Bitcoin into altcoins, driving their rise.
BTC dominance measures the market capitalization of Bitcoin relative to the total crypto market capitalization. Recent data shows that BTC.D has fallen from 65.4% to a low of 62%, before stabilizing around 63.7%.
Specifically, Bitcoin has delivered an average return in Q2 of around 26.89%. Ethereum has performed even better, with an average return of 66.8%.
Similar or greater returns could be expected as altcoins often follow the trend of Ethereum. With Q2 underway in 2025, this could be the perfect time for altcoins to experience a breakout.