After Bitcoin's new highs, the funding flow cycle points to an epic altcoin explosion.
With Bitcoin again reaching a new all-time high, several cryptocurrency analysts have begun to predict that the crypto market may soon welcome the largest altcoin season in history. Analyst Wimar.X noted in his latest research that, based on historical data, each round of altcoin season usually begins about 380 days after Bitcoin's halving event.
Considering that the last halving occurred in April 2024, this means that the altcoin season may start as early as May 25, 2025.
Source: Wimar.X Historically, each altcoin season has started about 380 days after Bitcoin's halving.
'The largest altcoin season in history will begin on May 25... During this cycle, the total market capitalization of altcoins will reach $15 trillion.' Wimar.X boldly predicts.
This prediction is mainly based on the funding flow cycles and historical behavior patterns of the crypto market. Analysts believe that the market excitement brought by Bitcoin is about to spread to the altcoin industry.
Wimar.X further explains the typical triggers for altcoin season: it usually begins after Bitcoin reaches a new all-time high (ATH) and enters a stable or slight correction phase. During this period, Bitcoin's market dominance (BTC.D) often declines, and funds begin to flow from Bitcoin to altcoins, driving the latter's prices to soar. Bitcoin's market dominance is an indicator that assesses Bitcoin's market value relative to the total market capitalization of the entire cryptocurrency market.
Recent data shows that BTC.D has dropped from 65.4% to a low of 62%, followed by stabilizing around 63.7%. 'The crypto market operates in cycles—this is the only consistent pattern year after year.'
When it comes to altcoin season, the formula is simple: Bitcoin's dominance declines + Bitcoin's price stagnates or rises = altcoins explode.
'This is an undeniable truth in the crypto market,' Wimar.X emphasized. The Moon Show founder Carl Moon shares the same view, claiming: 'Bitcoin's dominance is declining! The altcoin season is coming soon!'
The historical performance in the second quarter has been strong, with Ethereum leading the way, potentially driving the overall altcoin market.
Another factor supporting this prediction is the historical performance of the crypto market in the second quarter (Q2). Data from Coinglass shows that the second quarter is usually one of the strongest quarters for Bitcoin and Ethereum. Specifically, Bitcoin's average return in the second quarter is about 26.89%, while Ethereum's performance is even better, with an average return of 66.8%. Since altcoins often follow Ethereum's trends, a similar or higher return can be expected. As the second quarter of 2025 progresses, this could be an excellent time for altcoin explosions.
However, not all signals are entirely positive. According to data from Blockchain Center, when Bitcoin sets a new all-time high, the Altcoin Season Index drops to this year's low of 13, and as of the time of writing, it has slightly rebounded to 18. This index evaluates the performance of the top 100 altcoins relative to Bitcoin over the past 90 days.
If 75% of them perform better than Bitcoin, the market is considered to be in altcoin season. Despite the optimistic outlook, the recent decline suggests that altcoins have not yet led the market. This raises an important question: Will the altcoin season still follow historical patterns, or will investors need to wait longer for funds to shift from Bitcoin to altcoins?
Investors should respond cautiously, as historical patterns provide reference but not absolute guarantees.
Cryptocurrency market experts remind investors that while historical patterns provide valuable reference, market conditions are always changing. The altcoin season in 2025 may be influenced by various factors, including the global macroeconomic environment, regulatory developments, and the level of institutional participation. Notably, compared to the past, the current crypto market has matured significantly, with institutional participation markedly increasing, which may lead to changes in funding flow patterns.
Additionally, investors should also consider that different types of altcoins may perform differently. For instance, projects related to decentralized finance (DeFi), non-fungible tokens (NFTs), or the metaverse may exhibit varying performances due to the developments within their respective industries.
Therefore, while May 25 is marked as a potential start date for the altcoin season, investors should remain vigilant, closely monitor market indicators, and make decisions based on their risk tolerance and investment objectives.
As Wimar.X stated: 'In the crypto market, history often repeats itself, but each cycle has its uniqueness. The altcoin season in 2025 may be the strongest in history, but it may also unfold in ways we have not yet foreseen.'
As May 25 approaches, the cryptocurrency community will closely monitor changes in Bitcoin's dominance and market funding flows to look for the exact signals that indicate the true start of the altcoin season.
'Will it come true? Analysts predict: 5/25 will ignite the altcoin season, and it will be the strongest ever!' This article was originally published on 'Crypto City'
