YEREVAN (CoinChapter.com) — Analysts are pointing to Q2 2025 as a key period for altcoin accumulation.
The altcoin market capitalization has dropped by 40% from its all-time high. It currently stands below the $1 trillion mark. Many investors are facing losses after months of decline.
Bitcoin’s dominance in the market continues to grow. According to analysts, this could be an early signal for an altcoin recovery phase. The trend reflects historical cycles where Bitcoin peaks first, followed by capital rotation into altcoins.
Bitcoin Dominance at 60% Signals Shift Toward Altcoins
Bitcoin Dominance (BTC.D), which measures Bitcoin’s share of total crypto market value, has remained above 60% in recent weeks. If BTC.D reaches 70%, analysts say it could mark Bitcoin’s peak. After that, funds typically flow into smaller-cap coins.
Ash Crypto, a market analyst, shared a chart on X that shows this pattern. He said that Bitcoin’s 70% dominance has historically preceded strong altcoin performance. The chart he posted shows BTC.D holding above 60% with no signs of weakness so far.
Ash Crypto’s outlook suggests Q2 and Q3 could align with this rotation cycle. He supports this by referencing previous altcoin seasons that began after Bitcoin dominance peaked.
Altcoins Back to Launch Prices, Analyst Highlights Buy Zone
Joao Wedson, founder of Alphractal, noted that many altcoins have returned to their launch prices. He posted on X that several coins that were once hyped in past cycles have now erased gains.
“Since December 2024, we’ve been in a bear market (actually, the sentiment was already bearish since October). But I still believe that between April and May, the market will heat up for cryptos—even if BTC drops further, as we still have lower targets,” Wedson said.
He emphasized that this price drop suggests a clear accumulation zone. Wedson advises staying away from tokens that performed well in 2024, including ETH, SOL, and TRX. He focuses on identifying altcoins with strong fundamentals and long-term growth potential.
Fear Index Hits 25, Yet Analysts Remain Focused on Fundamentals
Despite optimism from some experts, the Crypto Fear & Greed Index dropped to 25 points recently. This marks an “Extreme Fear” zone. Geopolitical tensions and trade war risks are contributing to the market’s current sentiment.
However, some analysts believe the fear metric often acts as a contrarian signal. The disconnect between prices and project fundamentals has led some traders to begin positioning early.
Nic Puckrin, founder of Coin Bureau, has cautioned against the idea that Bitcoin is entering a new bear market. Still, he questioned the outlook for many altcoins, pointing to weak performance in some sectors.
Merlijn Sees Similar Setup to 2021 Altcoin Season
Another crypto trader, Merlijn, also weighed in on the setup. He posted on X that the next three to six months could define investor portfolios.
“Altcoin season is setting up—just like in 2021… The next 3–6 months could define your portfolio,” Merlijn said.
His comparison to the 2021 altcoin cycle supports the idea of a repeating pattern. That year, altcoins rallied after Bitcoin dominance peaked. This view aligns with both Ash Crypto and Wedson’s observations.
Traders are watching for further developments as Q2 progresses. While sentiment remains low, historical patterns and chart signals are drawing interest from analysts and investors alike.