Is a New Altcoin Cycle Brewing in 2025?

Crypto research firm Alphractal has released a new outlook suggesting that 2025 could mark the beginning of a fresh altcoin uptrend—despite recent underperformance across the sector.

Based on its weekly analysis of Bitcoin’s price in relation to the Altcoin Season Index, Alphractal outlined two key conditions that often precede an altcoin rally: either a slowdown following an extended BTC rally, or Bitcoin entering a bottoming phase where some altcoins hold up better in comparison.

One pattern stood out: since 2022, June has consistently marked the start of altcoin momentum, hinting that mid-2025 could follow a similar path. At the moment, about 23% of altcoins are outperforming Bitcoin on daily charts, and the Altcoin Season Index has shifted into a neutral zone—suggesting BTC’s dominance might be weakening.

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Alphractal also noted a sharp contrast in Web3 funding—$3.8 billion flowed into the space in Q1 2025, the most since 2022, while Q2 saw a major decline to levels not seen since 2019. These fluctuations, the firm argues, often align with major changes in altcoin market cycles.

While it’s too early to call it a confirmed trend, the signs of rotation are growing louder. According to Alphractal, the altcoin market may be gearing up for a significant shift.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.