Synchronized 5-Subseason Index Indicator: Is Now the Right Moment for Altcoins?
The Altcoin Season may be upon us, according to analysts
A flurry of activity in the cryptocurrency market has experts predicting that an altcoin season could be just around the corner. In a recent statement to his 578,000 Twitter followers, Trader and Angel Investor "Cyclop" said, "I've been in crypto for seven years, and I've never seen a clearer setup like this."
He pointed out four main signals happening simultaneously:
- Bitcoin price is near all-time highs,
- Retail investor interest is at a record low,
- The ETH/BTC ratio has broken a three-year downtrend,
- The altcoin index is moving upwards from its lows.
"Each of these factors has historically triggered an alt season," Cyclop said. "I'm having a hard time believing it, but I think the altcoin season is finally starting."
Has the Altcoin Season Begun?
The change in narrative around Bitcoin is one major factor signaling an altcoin season. Bitcoin, once seen as a speculative asset, is now being viewed as a geopolitical asset for countries fighting inflation, a macro hedge with corporate backing, and a store of value.
Altcoins, particularly large layer-1 projects like Ethereum and Solana, are no longer just "Bitcoin alternatives" but are positioning themselves as technology platforms with their own unique use cases.
Other indicators point to an altcoin rally as well. Global liquidity increase, the growth in stablecoin supply, bullish signals from the altseason index, and retail investor interest at low levels have all historically preceded major altcoin rallies[1].
According to CoinMarketCap's Altseason Index, we're currently in "Bitcoin season" (at 26 levels). However, the index dropped to 15 at the start of this month when Ethereum started moving[2]. CryptoRank's Altcoin Index is telling a similar story: it was at 15 mid-week last week and has since risen to 27[3].
The ETH/BTC ratio has also recovered from its 5-year low of 0.018 to 0.025 over the past few weeks[2]. Meanwhile, Bitcoin dominance has decreased from 65.4% to 62% in just one week[2].
Golden Cross Signal in Altcoins
On May 14th, Web3 fund manager Cas Abbé pointed out the daily golden cross signal in the altcoin market cap chart. A similar signal in October 2021 was followed by a mini altcoin season. However, Abbé warned that there could be a brief period of horizontal movement before a major rally[4].
On the other hand, analyst 'Ash Crypto' highlighted Ethereum's 30% gain in the last week, compared to Bitcoin's less than 3%, suggesting that an altseason is just around the corner[4].
The Future of Altcoins
If the signals hold true, several altcoins such as Ripple (XRP), Solana (SOL), and Cardano (ADA) are positioned as strong growth candidates in 2025, supported by unique technological use cases, blockchain innovations, increasing regulatory clarity, and institutional interest[5].
Furthermore, approval of altcoin-based ETFs in 2025, particularly for coins like Litecoin and Solana (with a 90% probability), is expected to further boost altcoin demand by providing more accessible investment vehicles for institutions and retail investors alike[4][5].
With all these factors at play, it seems that the stage is set for an exciting time in the world of altcoins[1][4][5]. So, buckle up and get ready for the potential ride of a lifetime!
Sources:[1] - CoinTelegraph[2] - CoinMarketCap[3] - CryptoRank[4] - Forbes[5] - NewsBTC
Web3 finance could witness significant growth during the anticipated altcoin season, with investing in altcoins like Ripple, Solana, and Cardano potentially providing high returns. Notably, a daily golden cross signal in the altcoin market cap chart, as observed by Web3 fund manager Cas Abbeé, is indicative of a potential altcoin rally.
