Crypto analysts are suggesting that the long-awaited altcoin season could be approaching, but current indicators don’t yet confirm a major upswing.
Crypto analyst ‘Ash Crypto’ predicted a “massive liquidity shift” later this year that could trigger a “parabolic pump” for altcoins.
So far, most altcoins have underperformed, even as Bitcoin has soared 680% from its November 2022 bear market low and other major assets like tech stocks and gold reached all-time highs.
Investors, he noted, are focusing primarily on safe-haven assets this year amid trade tariff concerns and ongoing geopolitical tensions.
“So currently, the liquidity is only in low-risk assets, and if you look at 2017 and 2021, this is how a bull market always plays out.”
However, with multiple Federal Reserve rate cuts anticipated and a more accommodative monetary policy, “we will see liquidity flowing back into risk assets,” driving BTC and Ether to new highs and pulling altcoins along, the analyst predicted.
Another analyst, digital asset investor ‘Crypto GEMs,’ shared a chart showing the last time the U.S. central bank injected liquidity, which marked the start of a previous altseason.
More than 150 altcoin exchange-traded funds are also awaiting SEC approval, which could serve as an additional catalyst for altcoin growth.
Altseason indexes remain at bear market lows
Despite growing optimism, altcoin season indicators paint a starkly different picture, with most indexes hovering near bear market lows.
The Blockchain Center’s Altseason Index stands at 35 out of 100, its lowest level since July. CoinMarketCap’s altseason gauge is even lower at 24, signaling that it is still “Bitcoin season.” Similarly, CryptoRank reports a reading of 24, while BitGet’s altcoin season index sits at 30.
Top-performing altcoins remain rare
Outside of a few standouts like Binance Coin and Hyperliquid (HYPE), which have recently hit all-time highs, most altcoins continue to trade at multi-year lows.
Some coins have shown movement today, however, including BNB, Solana, HYPE, Zcash, and World Liberty Finance (WLFI), all outperforming the broader market, according to CoinGecko.
