Optimism Grows for Upcoming Altseason Amid Low Indicators
Analysts express hope for the imminent arrival of altseason as liquidity moves towards high-risk assets, despite current indicators suggesting a bear market.
Crypto analysts are optimistic that the anticipated altcoin season may finally be on the horizon, as a substantial shift in liquidity is expected to stimulate a rise in risk assets. While indicators currently reflect a bear market, prospects for altseason are still debated.
A notable “massive liquidity shift” anticipated later this year is believed to lead to a “parabolic pump” for altcoins, according to analyst Ash Crypto. He notes that despite Bitcoin’s impressive surge of 680% since its low in November 2022, many altcoins have remained stagnant this year, as investors prioritize safe-haven assets due to trade tariffs and geopolitical uncertainty.
“Currently, the liquidity is only in low-risk assets; looking back at 2017 and 2021 shows how a bull market unfolds.”
Nevertheless, expectations are high for Federal Reserve rate cuts, which could redirect liquidity back to riskier assets, pushing BTC and Ether to new heights alongside altcoins.
Another analyst, Crypto GEMs, emphasized that the last liquidity injection by the Federal Reserve previously marked the beginning of altseason. An image shared illustrates the current market’s position, suggesting an impending significant movement.
Altcoin market cap on the cusp of a big move.
Source: Crypto GEMs
Furthermore, there are over 150 altcoin exchange-traded funds awaiting SEC approval, which could act as a significant catalyst for market movement.
Altseason Indexes at Bear Market Lows
Current metrics show that altcoin season indicators are at bear market lows, with the Blockchain Center’s Altseason Index at just 35 out of 100. CoinMarketCap’s measure is even lower at 24, indicating that it is still “Bitcoin season.”
Not altseason yet, say altcoin indexes.
Source: CoinMarketCap
Top-Performing Altcoins Scarce
Among the few exceptions like BNB and Hyperliquid, which have seen recent all-time highs, most altcoins are presently trading at multi-year lows. According to CoinGecko, today shows some movement with BNB, Solana, HYPE, Zcash, and World Liberty Finance outperforming the market.
Related: Will history repeat as altcoins typically drop hard before altseason?
