Altseason Expected in 2025 Amid Declining Cryptocurrency Market Activity
The cryptocurrency sector has encountered challenges recently, with the total market cap decreasing from nearly $4 trillion to around $3.3 trillion as Bitcoin trades below $105k.
Market Insights
- Bitcoin has shown bearish sentiment, leading the altcoin market.
- On-chain activity and trading volumes have declined significantly, down 78% for major assets since early December 2024.
- Meme coin demand has decreased, particularly for Dogecoin and Shiba Inu, due to notable rug pulls on chains like Solana.
Future Projections
- Mathew Sigel from VanEck anticipates a crypto bull cycle in 2024/2025, supported by recent regulatory cooperation in the U.S.
- Analyst il Capo Of Crypto expects altcoins may rise 10-20%, but warns of a subsequent drop, indicating a potential bull trap.
- This drop could establish a local bottom, paving the way for an altseason in 2025.
Potential Altcoin Gains
- The upcoming altseason may favor meme coins like DOGE, FLOKI, and TRUMP.
- Utility-based altcoins that are currently oversold may also see gains.