Despite the strong Ethereum price performance throughout 2025 so far, the full-blown altcoins season is facing hurdles.
Popular crypto analyst Michael van de Poppe cites the gold rally as the reason behind this, stating that investors continue to be in the risk-off mode.
He also added that the gold chart is showing signs of a local-top, and that investors should not lose hope.
Crypto analyst Michael van de Poppe cites an interesting correlation between altcoin season and gold. He noted that gold acts as a risk indicator, with investors hesitant to take on risk while gold prices climb.
Van de Poppe added that the market is at a pivotal point and expects that once gold reaches a short-term peak, altcoins could see a strong upward move.
On several instances earlier, Poppe cited the correlation between altcoins and Gold, noting.
During September, gold has maintained a steady return of 8%. Only one altcoin, Ethereum, has outperformed it with 15% gains. Overall, Ethereum has largely driven the altcoin market rally.
Bitcoin macro strategy platform “ecoinometrics” noted that gold led in overall returns in August, while Bitcoin ended the month with 15% negative returns.
With expectations of the Fed rate cut at the upcoming FOMC meeting on September 17, investors are on the edge, waiting for a major liquidity boost in the market. With Bitcoin dominance sinking, optimism among analysts remains high.
Analyst Crypto Patel says the altcoin rally is just beginning. According to Patel, the “real exit zone” for altcoins will come when Bitcoin dominance falls to 45%-40%.
Until then, investors could see 5x or higher gains on strong, high-potential altcoins. He urged traders to stay alert and well-positioned for the ongoing market move.
Similarly, crypto commentator 0xNobler noted that every major altcoin season in the past two cycles has historically started in September, producing exceptional returns for low cap altcoin gems with 1000x potential.
The pattern, repeating roughly every four years, saw altcoins surge up to 100x in 2017-2018 and selected low-cap assets deliver 125x returns during the 2021 cycle.
With Bitcoin consolidating and market liquidity shifting, Nobler suggests the market may be entering what he calls Altcoin Season 3.0.
