The crypto market is gradually changing and, judging by the dynamics, is approaching the first full-fledged alt season of 2025. Capital flows shifting from Bitcoin to Ethereum and other altcoins are currently forming a bullish sentiment in the market.
The main question is when to expect active growth of altcoins and which tokens to keep an eye on.
The alt season that everyone was waiting for
The crypto market is currently in a transitional phase and is only halfway to an official alt season. It is generally considered to have started when more than 75% of the top 50 cryptocurrencies show growth higher than Bitcoin.
Currently, this figure stands at 49%, indicating a gradual shift in balance towards altcoins, although a full season has not yet been reached. As more coins outperform Bitcoin in returns, investor sentiment is changing, and an alt season may arrive soon.
This intermediate stage indicates that the altcoin market is still in a consolidation phase. Some tokens are already outperforming Bitcoin, and if the trend continues, a full-blown alt season could begin by the end of the second quarter of 2025.
Analyst Michaël van de Poppe believes that macroeconomics sets the direction of the crypto market. According to him, there is a strong inverse correlation between gold and Ethereum:
“When gold consolidates, higher-risk assets like Ethereum typically start to show better dynamics,” noted the expert.
He added that the strong growth of gold often coincides with periods of weak altcoin activity. Furthermore, recent mergers & acquisitions, IPOs, and the acceptance of regulatory bills in the US have provided additional momentum to the crypto market.
Bitcoin dominance recently began to rise again after a 6.1% drop at the beginning of the month. Initially, the decline in the share of $BTC was perceived as a potential signal of an approaching alt season.
Historically, a decrease in Bitcoin dominance indicates that altcoins are starting to outperform it and are pulling the market up. However, if the share of BTC starts to rise again, the influence may shift back towards Bitcoin, delaying the alt season. According to Michaël van de Poppe, macroeconomic factors are often the reason for such a scenario.
“If altcoins do not continue to rise, the reasons will lie outside the crypto market,” noted the analyst.
He reminded that in the last six months, many crypto assets have shown negative returns precisely due to changes in the global economy. According to him, a return to cautious investments, due to trade wars, real conflicts, or a possible recession, could once again collapse the altcoin market. Conversely, we could see a powerful rise.
Ethereum is gaining momentum
Since the beginning of the month, the price of Ethereum has increased by 55% and approached the $4,000 mark. The main reason is the capital shift from Bitcoin to $ETH , attracting investors looking for higher returns.
“Ethereum has outperformed Bitcoin by more than 70%, we are currently observing the Ethereum market,” noted analyst Michaël van de Poppe.
He added that the sharp shift occurred due to changes in US regulation. The passage of the GENIUS bill and the CLARITY act opened access to institutional liquidity for Ethereum, and in recent weeks, the inflow of funds into #etf Ethereum has surpassed that into Bitcoin ETFs.
The recent growth of Ethereum is likely to drive altcoins built on its second-generation blockchain. These tokens may become the main favorites of the upcoming alt season to watch for.
“It is highly likely that coins that provide real utility in the Ethereum ecosystem—Aave, Optimism, Celestia, Arbitrum—will rise alongside Ethereum,” noted Michaël van de Poppe.
He added that tokens with strong ties to the US could also show better dynamics due to the hype surrounding them.
Positive momentum around Ethereum is expected to push the price towards $4,000 and above in the coming days. If the capital inflow from Bitcoin continues, Ethereum may break historical highs and set the pace for the entire crypto market.
