Altcoin Season 2025 Delayed? This Catalyst Could Take Down Bitcoin

Altcoin Season is not just a fancy term, but an event that every cryptocurrency enthusiast eagerly awaits with all their heart. AltSeason is essentially the period when the value of all altcoins other than Bitcoin rises to the sky. This event occurs when Bitcoin's dominance decreases and altcoins capture a larger market share. This is the time when large investors, often referred to as whales, shift their funds to altcoins. In 2025, everyone passionate about cryptocurrency is eagerly awaiting the next Altcoin Season. However, the dominance of Bitcoin remains above 64%, with no signs indicating the next altcoin season. When the price of Bitcoin reached a new high of over 110,000 dollars and its market share nearly hit its highest level since 2021, both investors and analysts posed the same question: "What happened to the altcoin season?" More importantly, is there a catalyst strong enough to reverse Bitcoin's dominance and bring about the long-awaited altcoin season? Why is the Altcoin Season 2025 Delayed? The story of the Altcoin Season begins when altcoins perform better than Bitcoin and is a persistent story that has yet to materialize this year. Despite many forecasts, the altcoin boom has not occurred or has only existed for a short time. The explanation is very clear: Bitcoin still attracts the largest amount of capital, especially institutional investors looking for a safe haven amid global economic and geopolitical instability. Moreover, according to the analysis on June 18 by Burrakesmeci on CryptoQuant, "While Bitcoin hovers around $104,000, altcoins have not yet met expectations. This is exactly what the 'Accumulated buy/sell quote volume gap over 1 year for altcoins (excluding BTC & ETH)' confirms." He added, "Back in December 2024, this metric turned positive, signaling a local peak for altcoins. Since then? It has gone down." Burrakesmeci emphasized that this figure is at -36 billion dollars, meaning that investors are withdrawing money from altcoins. The market share of Bitcoin hovers around 64% and the asset value has reached a new all-time high. This dominance is supported by several factors: Institutional inflow: Large investors, including hedge funds and publicly traded companies, have doubled their investment in Bitcoin and regard it as a stable asset during times of uncertainty. Since 2024, the number of publicly traded companies holding Bitcoin has doubled. Spot Bitcoin ETF: The success and approval of the spot Bitcoin ETF have funneled more money into BTC, making it difficult to find significant investment opportunities in altcoins. Regulatory and structural risks: Altcoins continue to face regulatory tightening, smart contract risks, and operational risks, making them unattractive to risk-averse investors. Meanwhile, the Altcoin Season Index is stuck in a low range and the money flow into altcoins in general is negative: over the past year, investors have withdrawn 36 billion dollars more from altcoins than the amount they invested in them. This risk-averse sentiment has caused altcoin investors to stay on the sidelines and wait for a clear signal to re-enter. The Only Catalyst That Can Drive the Altcoin Season in 2025 However, although the Altcoin Season is currently stagnant, experts believe it is not over but just delayed. The most important factor that could ultimately overturn Bitcoin's dominance and trigger an altcoin explosion is the change in global liquidity, specifically the Federal Reserve and other major central banks lowering interest rates. Liquidity is the key to cryptocurrency. When central banks lower interest rates or print new money into the financial system, this makes borrowing and investing in riskier assets like altcoins cheaper and easier. In the past, the biggest altcoin price rises have occurred after a period of monetary easing, when the market is flooded with cheap money. Today, the Federal Reserve has maintained interest rates at 4.25% to 4.50% due to concerns that inflation continues. This restrictive monetary policy has caused the cryptocurrency market to lose the necessary liquidity to drive a broad altcoin rise to the sky. According to experts, only when the Fed shifts to lowering interest rates and increasing global liquidity will capital begin to flow out of Bitcoin and into riskier, more profitable altcoins. Final Thoughts Although Bitcoin's leading position seems unbreakable at this time, the history of the cryptocurrency market proves that they are cyclical. The capital rotation into altcoins can occur quickly and powerfully as soon as a key liquidity driver is introduced, such as the Fed's interest rate cuts. According to some analysts, this change could occur as late as the end of 2025, while others warn that it may take until 2026 for macroeconomic conditions and regulations to improve. Altcoin investors are currently being held back. However, according to an expert, the longer it drags on, the more intense the breakthrough will be. When the catalyst appears, the next altcoin season could go down in history.