Why will the market heat up for crypto in Q2 2025?

As Bitcoin continues to dominate the crypto market, analysts are focusing on the second quarter of 2025 as the optimal time to start accumulating altcoins.

With the altcoin market capitalization down 40% from its all-time high to below $1 trillion, many investors are facing losses.

However, some market observers consider this a great opportunity for the upcoming altcoin season.

Analysts Call for Altcoin Season

Speaking about this issue, Joao Wedson, the founder of Alphractal, predicted:

“Since December 2024, the market has entered a bearish state (. In reality, the negative sentiment began back in month 10). However, I still believe that around April to May, the crypto market will become active again, even if BTC continues to decline, as we still have lower targets ahead.”

He also advises caution by staying away from coins like ETH, SOL, and TRX, which are expected to increase in price in 2024.

Instead, Wedson emphasized a patient strategy, waiting for the optimal time to buy altcoins at a lower price.

Although this strategy is cautious, it presents a promising opportunity for long-term growth in the altcoin market.

Sharing a similar view, veteran trader Merlijn predicts that the upcoming altcoin season will be like that of 2021.

In a recent post on X, he emphasized:

“The altcoin season is forming just like in 2021… the next 3-6 months could shape your investment portfolio.”

Market trends indicate the opposite

However, despite the many speculations, key indicators in the industry suggest that the altcoin season is still not near.

Capriole’s altcoin investment index has dropped to just 12%, a sharp decline of 53% compared to December 25. During this period, ETH fell by 49%, from a level of $3,490 according to data from CoinMarketCap.

In addition, the altcoin season index from CoinMarketCap, which measures the performance of the top 100 cryptocurrencies against Bitcoin over the past 90 days, is currently at a low of 16/100, indicating that the market is still dominated by Bitcoin, often referred to as “Bitcoin Season.”

Is Bitcoin’s dominance rate a stimulating factor?

Although Bitcoin’s current dominance rate is 61.9%, some analysts believe it may no longer be a reliable indicator for the onset of altcoin season.

To reinforce this point, renowned analyst Ash Crypto believes that Bitcoin’s dominance rate reaching 70% will mark a peak, which historically has often signaled the beginning of the altcoin season in the following months.

Monthly Bitcoin dominance rate | Source: Ash CryptoThe Bitcoin dominance index (BTC.D) tracks Bitcoin’s market capitalization compared to the total cryptocurrency market capitalization.

BTC.D decreasing usually indicates that capital is flowing into altcoins. Currently, BTC.D remains above 60%, showing no signs of weakening. This reinforces Ash Crypto’s viewpoint that Q2 and Q3 of 2025 may witness a strong growth of altcoins.

This situation further increases expectations that the altcoin market may soon recover as Bitcoin’s dominance ratio begins to decline.

You can check the coin price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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