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Steve Muchoki
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Key Notes
- Mathew Sigel from VanEck has argued that another crypto bull cycle will happen in the near future fueled by favoring regulatory reforms in the US.
- The creation of many altcoins has diluted the liquidity, thus slowing down the 2025 altseason.
As the global markets prepare accordingly for the tariff wars induced by US President Donald Trump, the cryptocurrency industry has faced significant headwinds in the past few weeks. Bitcoin price BTC $88 409 24h volatility: 3.7% Market cap: $1.75 T Vol. 24h: $28.96 B has led the wider altcoin industry in bearish sentiment in the past few weeks, despite the pro-cryptocurrency Trump administration taking office earlier this year in a well-decorated event.
The total cryptocurrency market cap has dropped from nearly $4 trillion, when Bitcoin price hovered above $105k, to around $3.3 trillion on Thursday, February, 20. With Bitcoin price having formed a double top in the past three months, signaling a potential cycle top, the fears of no altseason in 2025 remain palpable.
Declining On-chain Activity Slows Down Altseason
The on-chain and trading activity on most blockchains has been declining in the past few weeks amid notable whale capitulation. For instance, market data analysis from IntoTheBlock shows a 78% decline in trading volume for a basket of eight Base assets since early December 2024.
Worth noting that Base network, a Coinbase Global Inc (NASDAQ: COIN) backed project, has been the leading layer two scaling solution on the Ethereum (ETH) network.
As Coinspeaker reported, the demand for meme coins has significantly dropped in the past few weeks, led by Dogecoin DOGE $0.18 24h volatility: 7.1% Market cap: $27.34 B Vol. 24h: $1.17 B and Shiba Inu SHIB $0.000014 24h volatility: 4.7% Market cap: $8.00 B Vol. 24h: $174.45 M . The notable rug pulls on top chains, led by Solana SOL $143.4 24h volatility: 8.2% Market cap: $73.30 B Vol. 24h: $4.42 B , have pushed away potential investors, thus draining the much-needed liquidity.
Expected Timelines
According to Mathew Sigel, the Head of digital assets research at VanEck, the 2024/2025 crypto bull cycle cannot be over with the stars aligned. Sigel highlighted that the recent administration change in the United States has helped Congress, the Senate, regulatory agencies, and the White House to work together in enabling the mainstream adoption of digital assets and blockchain technology.
As a result, popular crypto analyst il Capo Of Crypto highlighted that altcoins will likely bump 10-20% from the current levels. However, Capo noted that the bump will be a bull trap as another drop is on the horizon. Nonetheless, the crypto analyst highlighted that the drop will yield a local bottom, which will form a basis for the thrilling phase of the 2025 bull cycle.
Expecting altcoins to pump 10%-20% from here.
However, I believe this bounce is a bull trap, because a big drop is likely to follow.
After that potential drop (second capitulation event), the local bottom should be in, and altseason is likely.
Adaptation is key. Let's see! pic.twitter.com/0YO9O8rhvO
— il Capo Of Crypto (@CryptoCapo_) February 20, 2025
Top Altcoins to Consider
With the 2025 altseason likely to occur in the coming months, it is prudent to prepare for an exciting crypto rally ahead. The meme coin industry led by DOGE, FLOKI FLOKI $0.000067 24h volatility: 7.0% Market cap: $649.86 M Vol. 24h: $98.00 M , and TRUMP TRUMP $11.82 24h volatility: 3.1% Market cap: $2.36 B Vol. 24h: $1.19 B will be among the top gainers of the 2025 altseason.
Utility-based altcoins, especially the most oversold projects with respect to Bitcoin, will also register palpable gains in the upcoming 2025 altseason.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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