The crypto market is a constant tug-of-war between Bitcoin’s stability and the explosive potential of altcoins. For months, the community has been buzzing about the possibility of an “altseason,” that period where altcoins, led by Ethereum, outperform Bitcoin and capture the market’s imagination (and capital). Is it finally happening? The data suggests we may be closer than ever.
Bitcoin’s impressive run might be slowing down, according to key technical indicators.
While Bitcoin’s indicators point to a potential slowdown, Ethereum is showing serious signs of strength and a possible breakout.
Excluding Bitcoin, the broader altcoin market is exhibiting a falling wedge pattern. This formation, characterized by converging trendlines and decreasing volatility, often signals a potential bullish reversal. The fact that the RSI is holding above 50 suggests underlying strength within the altcoin market, further reinforcing the likelihood of a significant upward breakout. Traders often look for increased volume upon breaking the upper trendline as confirmation of this pattern
The Trump Factor and a Potential Regulatory Tailwind?
With the inauguration of President Trump approaching, Steno Research believes that 2025 could be the crypto market’s best year ever, with Bitcoin and Ethereum making potential “remarkable positive developments” and marking new highs.
The most compelling narrative revolves around a shifting tide of institutional interest.
Recent data indicates a decline in U.S. job openings, with figures falling to 7.6 million, the lowest since September. This cooling labor market could influence Federal Reserve policies, potentially leading to more accommodative monetary conditions that favor risk assets like cryptocurrencies.The crypto industry is poised for a breakout as sources point to altcoins relative outperformance as bitcoin’s rally has slowed.
With Bitcoin’s upward trend cooling and Ethereum’s surge fueled by institutional backing, the question shifts to the altcoin arena. Titan of Crypto, has shed light on the much-awaited season, highlighting the possibility that one could unfold in the short term.
In conclusion, several factors align to suggest that an altseason led by Ethereum could be on the horizon: a bullish Ethereum outlook in contrast to Bitcoin’s potentially bearish signals, the significant inflows into Ethereum ETFs, the long-awaited $16 billion repayment process by FTX, the potential for lower U.S. interest rates, and market optimism following Trump’s U.S election win in November.
