'Massive liquidity shift' at the end of the year will lead to 'parabolic growth' of altcoins. This scenario was predicted by an analyst under the nickname Ash Crypto.
According to him, this year investors are focused only on safe-haven assets due to concerns about trade tariffs and geopolitical tensions. At the same time, 'if you look at 2017 and 2021, this is how a bull market always develops.'
The catalyst for change will be the expected decrease in the key interest rate of the Federal Reserve. This will lead to an increase in the quotes of Bitcoin (BTC) and Ethereum (ETH), followed by altcoins.
The analyst under the nickname Crypto GEM shares a similar point of view. The specialist presented a chart that confirms the correlation between the easing of monetary policy and the growth of the cryptocurrency market capitalization, excluding the top 10 digital assets.
Source: Crypto GEMs.
An additional driver may be the approval by the U.S. Securities and Exchange Commission of proposals for launching exchange-traded funds based on altcoins. Currently, the regulator is reviewing over 150 applications.
On the topic: the analyst explained why the altseason will only begin after the rise in Bitcoin's dominance.
Is it not time yet?
The altseason indicators are at the lowest levels of the bear market.
Thus, the calculated Blockchain Center metric is 35 points - the lowest since July.
The analog from CoinMarketCap is even lower - 24 points, from CryptoRank - 24 points, from BitGet - 30 points.
The dynamics of the altseason index from CoinMarketCap. Source: CoinMarketCap.
Except for Binance Coin (BNB) and Hyperliquid (HYPE), which recently updated their historical highs, most coins are trading near multi-year lows.
On the topic: altcoins usually drop sharply before the altseason. Will history repeat itself?
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk; readers should conduct their own research before making decisions.