The current cryptocurrency market cycle is deviating from established norms, catching many observers off guard. Predictions of a typical altcoin season, especially one following Bitcoin’s surge, have so far not materialized.
This cycle is marked by a distinct shift in market behavior, where the anticipated altcoin rally has yet to emerge post-BTC gains.
Analysts Reassess Crypto Market Positions
The current market situation has left most analysts reassessing their positions in the crypto market. Many are considering the new developments and fundamental changes in the crypto industry between the last bull cycle and the current one, especially the introduction of ETFs. They think most funds that usually go to altcoins now end up in those ETF products.
Meanwhile, some crypto community members think the rise of memecoins took a chunk of investments away from the regular altcoins market. They believe these distractions caused institutional investors to diverge from the regular pattern of notable altcoins receiving significant attention after Bitcoin rallies. Hence, despite the multiple BTC all-time highs in the current cycle, many top altcoins have not surged.
US Monetary Policy & Trump Crypto Stance Key to Altcoins
While introducing ETFs and other cryptocurrency elements distracted investors from altcoins, many experts think things will change when the US monetary policy takes a different dimension.
They expect Fed interest rate decisions and President Donald Trump’s outlook toward cryptocurrency to play significant roles in how the altcoin market evolves during the current cycle.
Selective Altcoin Market Ahead, Say Analysts
In the meantime, most analysts believe it will not be business as usual for the altcoin market, considering the many changes occurring in the crypto industry.
For instance, there is a meaningful dispersion between viable assets and irrelevant coins. Hence, they believe the upcoming altcoin market will be selective, and only a few will surge. However, the timing of the altseason will depend on fundamental and macroeconomic factors because of the influx of institutional investors into the cryptocurrency ecosystem.
