Altcoins are still going through a tough phase as Bitcoin continues to dominate the market, but new signals suggest a large altcoin season may be imminent.
Specific macroeconomic indicators, along with Ethereum's breakout, indicate the possibility of the altcoin season brightening from Q4 2025, when supportive factors from monetary policy and large capital flows emerge.
MAIN CONTENT
The weakening of the USD could trigger a strong rally for altcoins as in previous cycles.
The ratio of copper to gold indicates that investor sentiment is gradually becoming more risk-seeking, favorable for altcoins.
Ethereum is leading the trend, with ETF capital flows and interest from major financial institutions.
Why can the weakening of the US dollar boost the growth of altcoins?
Crypto Decoder experts state that the weakening of the US dollar index (DXY) often creates favorable conditions for altcoins to surge. Historical data from 2017 and 2021 both show that altcoins exploded when the DXY fell sharply.
The reason stems from the loose monetary policy of the Federal Reserve, as borrowing conditions become easier, capital tends to shift into risk assets like Bitcoin first, followed by altcoins.
Currently, the DXY index is gradually weakening and has not been able to break through the resistance level of 109. If the DXY falls below the important support level, it will open up strong growth opportunities for altcoins; however, the Fed needs to make a clear policy change to create a real push.
What does the copper-gold index reveal about upcoming trends?
The copper-to-gold ratio is a little-noticed but very effective macro indicator for measuring investor sentiment regarding risk. When copper outperforms gold, the market shows optimism and a willingness to accept risk.
According to Crypto Decoder's analysis, this ratio has just surged past the 20-week moving average, similar to previous movements before strong altcoin price increases in 2017 and 2020, signaling that market conditions are turning positive for altcoins.
Why is Ethereum leading the current bullish trend?
Ethereum recorded a stronger recovery than Bitcoin in Q2 2025, marking the first time since Q4 2022. With over $2 billion in ETF capital flowing in since May, ETH shows superior strength, indicating increasing interest from institutional investors.
Ethereum holds over 50% of the value of locked assets in the DeFi sector and is the main driver of liquidity for altcoins, so the recovery of ETH is a positive signal for the entire market.
The altcoin season may not explode immediately, but macro data along with Ethereum's leadership is laying a solid foundation for a bullish wave coming from Q4 2025.
– Crypto Decoder, Cryptocurrency analyst, July 2025
Will the altcoin season return in Q4 2025?
Expert Michaël van de Poppe states that if the Fed lowers interest rates in September 2025 and economic indicators remain positive, Q4 could witness a remarkable recovery of altcoins like the strong rallies following previous halvings.
The Altcoin Season Index hit a low in June, similar to previous phases before large altcoin price explosions. Predicting a wide and prolonged altcoin season in the second half of 2025 is very likely.
The bullish cycle is returning, along with loose policies and institutional capital flows that will contribute to an altcoin market explosion in Q4 2025.
– Michaël van de Poppe, Cryptocurrency market analyst, July 2025
What macro factors affect the altcoin season?
US monetary policy, particularly the Fed's interest rate decisions and fluctuations in the USD index, are top factors impacting the health of altcoins. Economic indicators such as the copper-gold ratio also clearly reflect investment sentiment trends towards risk assets.
These factors help investors assess the potential for altcoin explosions and adjust their portfolios accordingly, improving risk management effectiveness.
Comparison table of altcoin performance during weak USD cycles
Year DXY Index Decline Altcoin Market Capitalization Recovery Time 2017 Dropped sharply from 103 to 92 Increased 285 times in 3 months 2021 Dropped from 94 to 89 Increased 17 times in 4 months 2025 (Forecast) Weakening, not breaking through 109 Great potential for breakout Q4 2025
Frequently Asked Questions
What is the altcoin season? The altcoin season is a period when the prices of many altcoins rise significantly compared to Bitcoin, attracting large capital flows and creating high-profit opportunities. (Source: Crypto Decoder analysis, 2025) Why does a weak USD affect altcoins? A weak USD increases liquidity and the flow of capital into risk assets like altcoins, especially when the Fed loosens monetary policy. (Source: Market report 2025) How does Ethereum impact the altcoin market? Ethereum accounts for over 50% of the TVL value of DeFi, leading liquidity and institutional investor interest, positively affecting all altcoins. (Source: ETF capital flows 2025) When might the altseason occur in 2025? Many experts predict that the altcoin season will explode from Q4 2025, after the Fed lowers interest rates and favorable economic indicators emerge. (Source: Michaël van de Poppe, 2025) What does the copper-gold ratio reflect in cryptocurrency? This ratio measures investor risk sentiment; when copper is stronger than gold, it indicates a more positive market attitude towards altcoins.
Source: https://tintucbitcoin.com/altcoin-season-bat-dau-thang-10/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
