Analyst Ali Martinez believes that a new altseason is unlikely due to the vast number of altcoins in the market.
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Analyst Ali Martinez believes that a new altseason is unlikely due to the vast number of altcoins in the market. According to him, there are currently more than 36.4 million such assets, whereas in 2017-2018 there were fewer than 3,000, and in 2013-2014, only around 500.
As a result, technological altcoins have lost their speculative appeal, as millions of new tokens create high competition for investor attention and capital, Martinez argues.
User Sebastian, also known as The Dogecoin Bull, disagrees with this view. He believes that the increase in the number of altcoins actually stimulates interest in the market, creating more opportunities for investors.
He explains that with each market cycle, there is technological development and an increase in financial literacy among investors, making the market more mature. Institutional players have started actively investing in altcoins, which could lead to a surge in their prices.
Furthermore, he points out that even with a large number of tokens, their value grows due to FOMO, technological breakthroughs, and important news. For example, meme coins or projects related to DeFi and NFTs can still attract capital despite the overall market saturation.
Analyst Rekt Capital, on the other hand, believes that the revival of altseason is only possible if Bitcoin’s dominance decreases.
Currently, Bitcoin controls 61,75% of the market, with this figure recently reaching 62,81%, the highest level in the last four years. According to experts, if Bitcoin continues to strengthen its position, altcoins will remain in the shadows. They believe that only a decrease in Bitcoin’s dominance to 55% or lower will create favorable conditions for the growth of altcoins.
However, there is an opposing view. Trader Titan of Crypto argues that Bitcoin’s dominance at 62% is a bearish signal, and the market is already ready for a trend shift in favor of altcoins. He pointed to the rare candlestick pattern Gravestone Doji, which may signal a reversal.
Analytical platform Stockmoney Lizards links Bitcoin’s dominance growth to several factors, including:
Additionally, experts believe that Ethereum’s weakness against Bitcoin also limits the growth of altcoins. ETH remains in a multi-year downtrend relative to BTC, which may further strengthen Bitcoin’s dominance.
Analyst Cryptowzrd suggests that altseason could begin as early as March 2025. He points to historical patterns that signaled the start of altcoin growth in 2017 and 2021.
According to his calculations, the OTHERS/BTC (altcoin index relative to Bitcoin) recently tested an important support level, after which a new wave of growth may begin.
Some traders also focus on technical indicators, such as Elliott Waves, which suggest that the altcoin correction could be nearing its end, potentially starting a new trend.
Earlier, analyst Miles Deutscher identified signs of the approaching altseason. In his opinion, this event can be predicted based on seasonal factors. He noted that altcoin activity typically increases from January to May, when Ethereum (ETH) begins to show higher returns compared to Bitcoin. During such periods, investors tend to redistribute capital into ETH and other altcoins, triggering a chain reaction of growth.
For more on this, we wrote about it here.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
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