TLDR
- Crypto analyst Gert Van Lagen has identified a cup-and-handle pattern suggesting altcoins could reach $5.4 trillion valuation before 2026
- Analyst Cas Abbé believes altseason is coming due to potential altcoin ETF approvals, Fed rate cuts, and regulatory clarity in late 2025
- Coinbureau’s Nic Puckrin states three conditions for altseason: Bitcoin dominance below 54%, Bitcoin breaking its all-time high, and Fed ending quantitative tightening
- The current altcoin season index is at 21, indicating Bitcoin still outperforms most altcoins (altseason begins when index exceeds 75)
- Total crypto market has reclaimed the $3 trillion mark, with altcoins accounting for 36.1% of investments
The cryptocurrency market appears poised for a possible altcoin season, with several analysts pointing to technical patterns and market conditions that could trigger massive growth for alternative cryptocurrencies. While Bitcoin continues to dominate the market, experts suggest various indicators that could signal the beginning of an altcoin rally.
Dutch market analyst Gert Van Lagen recently highlighted a bullish cup-and-handle pattern on the altcoin market bi-weekly chart. This pattern, consisting of a U-shaped price movement followed by a small descending channel, typically indicates potential market growth after consolidation.
Altcoin Marketcap [2W]
🟨 Accumulation
🟧 Breakout + Retest
🟩 Altseason
🔁 pic.twitter.com/KubpPKSewF— Gert van Lagen (@GertvanLagen) May 3, 2025
According to Van Lagen, if the altcoin market cap breaks above the current neckline of $813.18 billion, total altcoin valuation could surge to approximately $5.4 trillion before 2026. This would represent a 564% market growth from current levels.
Key Conditions for Altseason
Not all analysts agree on the timing, however. Nic Puckrin, CEO and Co-founder of Coinbureau, has outlined three specific conditions necessary for an altseason to materialize.
Alt Season – a REALISTIC take.
Here’s my one-post rundown so you can stop doom-scrolling and start watching the right signals👇
🗓 Timing:
Altseasons usually begin ~320 days after a Bitcoin halving. Target hit 🎯
📉 Macro:
The Fed hasn’t pivoted—QT is still draining, rates…
— Nic (@nicrypto) May 2, 2025
First, Bitcoin dominance must fall below 54%. This metric measures Bitcoin’s share of the total crypto market and must decline to indicate investors are rotating capital into altcoins.
Second, Bitcoin must break above its current all-time high without absorbing all market liquidity. This would allow for the typical pattern where Bitcoin establishes dominance, then consolidates, creating room for investment in lower-cap assets.
Third, the US Federal Reserve must end all Quantitative Tightening measures and confirm interest rate cuts. This would increase market liquidity, which Puckrin considers essential for an altseason.
Market Factors and Timing
Web3 growth manager Cas Abbé acknowledges the altseason has been delayed but remains optimistic about its eventual arrival. Abbé points to multiple catalysts expected in late 2025.
Wen Altseason?
This has been the most asked question since 2024.
If you are looking for an honest and data-based response, this is the only thread you need to read: 🧵 👇
— Cas Abbé (@cas_abbe) May 3, 2025
One major factor is the potential approval of several altcoin ETFs in Q3/Q4 of 2025. Similar to how Bitcoin ETFs affected the market in 2024, these approvals could drive institutional investment into the altcoin space.
Abbé also expects the Federal Reserve to begin rate cuts in June and terminate quantitative tightening. These moves would likely create a risk-on environment favorable to altcoin growth.
Regulatory clarity, expected by late 2025, represents another potential catalyst. This clarity could allow traditional banks to engage more confidently with the crypto market, bringing substantial liquidity.
Currently, the altcoin season index sits at 21, well below the threshold of 75 that would indicate an active altseason. This metric shows that Bitcoin still outperforms most altcoins in the present market.
The total cryptocurrency market has recently reclaimed the $3 trillion valuation mark following a bullish swing. Altcoins currently account for 36.1% of all crypto investments, with room to grow if the predicted altseason materializes.
Trading volume across the crypto market has decreased by 16.82%, currently valued at $68.83 billion. This fluctuation is typical as the market awaits clearer directional signals.
Historically, altseasons occur around 320 days after a Bitcoin halving. With the most recent halving occurring in April 2024, this timeline aligns with the late 2025 predictions from several analysts.
Market observers continue to debate the feasibility of an altseason during this bull cycle, with some citing concerns about the increased number of altcoins compared to previous cycles as a complicating factor.
The coming months will likely provide clearer indicators as to whether the market conditions will align to trigger the widely anticipated altcoin rally that many investors are positioning for.
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