The crypto market has lit up lately with Bitcoin’s (BTC) price edging closer to the $100k mark. However, analyst Axel Bitblaze highlights a contrasting reality for many altcoin holders.
While Bitcoin thrives, portfolios heavy with utility coins or meme coins remain stagnant. In a detailed thread on X, Bitblaze analyzed several factors suggesting an impending altcoin resurgence.
What you'll learn 👉
Bitcoin Dominance and Historical Patterns
The dominance of Bitcoin keeps increasing, reaching new heights every week. Bitblaze claims that this pattern has led to poor performance in the altcoin market as a whole.
Drawing from Bitcoin’s historical four-year cycle, he explains how pre-halving and halving years tend to favor Bitcoin, while post-halving years ignite altcoin rallies.
With the 2024 halving already past, Bitblaze predicts that altcoins could see a rebound within the coming 4-6 weeks. He bases this on the emergence of a golden cross in the altcoin market capitalization. The last occurrence of this technical pattern led to a 300% surge in altcoin market cap over a year.
Memecoins Paving the Way for Retail Participation
Memecoins, often dismissed as speculative assets, are playing a pivotal role in bringing retail liquidity back to the market, Bitblaze notes. Major exchanges like Binance and Coinbase have ramped up listings of memecoins, generating volumes that surpass those of established altcoins.
This influx of retail interest, according to the analyst, lays the groundwork for an altcoin season. Bitblaze also pointed to external factors, such as the potential removal of capital gains taxes on U.S.-based crypto projects, which could further bolster altcoin adoption.
The Trump administration’s proposed crypto-friendly policies and the acquisition of Bakkt, a multi-asset trading platform, are additional indicators of a favorable environment for altcoins.
Read also: Solana Price Hits New ATH as Whales Accumulate: Can SOL Overtake Tether?
Rising Altcoin Trading Volume
The weekly volume of altcoin trading has risen to $300 billion. This is the biggest level since 2021. Increased activity for top assets like DOGE, XRP, and SOL suggests that investors are once again interested.
Bitcoin’s volume dominance over other leading assets has shifted, dropping to its lowest level since 2022, according to Bitblaze. He interprets this as a signal that liquidity is beginning to flow into altcoins, setting the stage for a potential market rotation.
Outlook for 2025: The Year of Altcoins?
Bitblaze concludes his analysis with optimism for altcoins, forecasting a robust market in 2025 as the crypto space moves further into the post-halving phase. He predicts that liquidity and investor attention will gradually shift from Bitcoin to altcoins, rewarding patient holders.
With altcoin market conditions aligning, many are closely watching for the much-anticipated rally. As Bitcoin nears its milestone, the question remains whether altcoins will finally follow suit.
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