When Will Altseason Arrive? Breaking Down the 2025 Delay

Altseason has been long delayed despite the crypto market reaching major milestones. Certain factors can be seen acting behind this lag and the first could be Bitcoin’s dominance which is still above 55%. This dominance explains the prevention of money into smaller coins. Next is the pressure building over Ethereum. Ethereum has seen a massive rally and is now under pressure with validators exiting and booking profit. However, these funds are not diverted towards altcoins. They are being used to invest in Bitcoin and stablecoins. This brings us to the next factor explaining the reason behind money being rotated back to Bitcoin - macro conditions, geopolitical issues and regulatory policies. The global economy is hit by uncertainty. Countries are being cautious of crypto and modifying their policies around it and the exchanges. Strict Fed policies and crypto rules are also pushing investors towards safer assets like Bitcoin and Ethereum. Finally, retail participation has always been the key for altseason to arrive. This enthusiasm is seen missing this year so far. To sum it up, altseason has not vanished, it is building its momentum. The groundwork has been done and a strong rally is to be expected real soon. _________________________________________________________ 2025 has been a happening year in terms of crypto. We saw Bitcoin becoming equivalent to the value of gold, Ethereum reaching a key barrier, XRP winning its SEC battle and much more. Still, there is something missing. Altcoins are still not seeing the expected growth. Every chart, every movement aligns perfectly, yet, despite the hype, altseason is delayed. Let us break it down and understand the reasons behind it. 

Bitcoin’s dominance is still high

It has been seen that an altseason usually starts once Bitcoin slows down after a big rally. During this time, investors rotate their profit into smaller coins. This year, however, Bitcoin’s dominance has stayed  above 55%. Investors are still considering it as a safer bet which is delaying the liquidity shift towards altcoins. Unless and until this dominance drops, the altcoin rally will stay delayed. 

Ethereum’s market pressure

Ethereum is the most important key to the altcoin market. A network that hosts many of them on its blockchain, however, at present Ethereum is facing a record validator exit queue, that is a whopping $4.6B. This signals that investors are withdrawing funds and taking profit. These funds, instead of finding their way into altcoins, are going to the stablecoins or back into Bitcoin. This has weakened the momentum for altcoins, making the market more hesitant. 

Macro conditions, regulatory policies and concerns around liquidity

Crypto is no longer remained a standalone tradable asset. Institutions and governments are taking huge interest in it. Under such a situation, there is no surprise that global economic uncertainties and The Federal Reserve’s stance are affecting it. Under such doubtful circumstances, investors are looking for safer assets. In the crypto market, Bitcoin and Ethereum are considered more dependable than others. Thus, smaller altcoins being more volatile, are not getting big inflows.  Governments around the world are getting cautious about crypto and are tightening their rules on exchanges. There is uncertainty looming over listings and compliances of many coins. All said and done, until liquidity improves across global markets, altcoins will have to wait for the liquidity to pour in. 

Missing retail momentum

Retail investors have been the real driver of any altseason till date. They are the ones who are chasing “the next 100x gem” looking out for high-risk, higher-reward coins. This retail enthusiasm is missing this year so far. Where institutional investors and governments mainly focus on Bitcoin and Ethereum, smaller altcoins rely on retailers. Since this energy is missing, altcoins are struggling to get that parabolic growth.  In a nutshell, altseason has not disappeared, it is lagging behind. However, the foundation of its surge is building and patience is a virtue. We’ll all see it arriving faster and stronger than expected. ____________________________________________________________________________

FAQ

Why hasn’t altseason started yet this year? Major factors that play a crucial role in starting altcoin season have not aligned yet. Bitcoin dominance is still high and Ethereum is facing fund withdrawals. Liquidity received from Ethereum is moving back to Bitcoin as global regulations are tightening which is further diminishing retail enthusiasm. How does Bitcoin dominance affect altcoins? Bitcoin is considered as the most secured crypto and holds a large market share with most liquidity. For altseason to start Bitcoin has to stabilize after a rally and profit must be rotated into altcoins.  Can we still expect altseason? There is a high possibility that altseason may start in a some days. Analysts believe that the foundation is forming. As soon as bitcoin’s dominance will fall, liquidity will improve and retail investors will return bringing in stronger altseason than ever.