The altcoin market cap is currently at a breakout point and is expected to rebound by five times from this point.
Altcoins are poised for one of the most significant crypto market rallies in history, with analysts predicting that the total market capitalization will increase by fivefold and reach $7 trillion. Like the 2021 bull run, the sector is poised for a significant blow-up, as indicated by the robust technical setup.
Is the altcoin sector preparing for a 5x rally?
According to crypto market analysts, altcoins are anticipated to initiate a significant bull run in Q1 2025, as the technical chart setup resembles that of the 2021 bull run. The chart below indicates that the next peak could be approximately $7 trillion by connecting the market cap peaks of the previous bull runs in 2018 and 2021.
The crypto market has experienced significant volatility throughout December 2024, with Bitcoin prices fluctuating between $90,000 and $110,000. The current market capitalization of all cryptocurrencies, except Bitcoin, is just under $1.5 trillion, according to data from CoinGeckco. Nevertheless, the present circumstances indicate that a robust bottom formation is underway, which implies that the altcoin correction may have concluded.
Furthermore, the alt season index has been establishing a robust foundation at 47, having plummeted from 88 on December 4 of last month. Additionally, this index is expected to experience a positive recovery from this point forward as Bitcoin’s dominance begins to wane.
The cryptocurrency market is currently experiencing a robust recovery
Today’s crypto market movement is characterized by a robust upward trend, with most of the increase attributed to the top altcoins. Other players, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Avalanche (AVAX), have experienced gains of 6-10%, with the XRP price surge of 15% currently leading the way. Therefore, the commencement of 2025 is robust, motivated by a general sense of optimism.
Steno Research anticipates that Bitcoin (BTC) and Ethereum (ETH) will surpass $150,000 and $8,000, respectively, in its 2025 prediction. Additionally, there has been an increase in the level of optimism among analysts regarding the forthcoming altcoin season.
This bullish forecast for Bitcoin and Ethereum is predicated on anticipating a highly favorable regulatory environment for cryptocurrencies, a supportive macroeconomic backdrop with declining interest rates, and improved liquidity. Additionally, the report observes that the crypto market has consistently experienced a bullish year in the year following the Bitcoin halving. In addition, it included:
“On top of this, institutional adoption is expected to reach unparalleled levels, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs.”
AI agents and tokens such as ai16z will gain market dominance in January 2025. Other crypto events, such as the deadline for Solana ETF approval and the unlocking of tokens, will determine the direction of market movement in the future.
