Why is Altcoin Season 2025 at Risk of Delay?
As we enter 2025, many crypto investors are eagerly anticipating the arrival of the altcoin season—a period when altcoins typically experience significant price surges.
However, several factors suggest that this season may be delayed. Here are the key reasons to watch out for:
Bitcoin Dominance by Institutional Investors
According to information we cited from Beincrypto, CryptoQuant CEO Ki Young Ju stated that the current surge in Bitcoin’s price is being driven by institutional demand through products such as spot ETFs.
These institutional investors tend to hold their assets in Bitcoin and do not actively participate in crypto exchanges, thereby reducing the chances of capital rotation into altcoins.
Liquidity Limitations for Small-Cap Altcoins
Altcoins with smaller market capitalizations heavily rely on liquidity from retail traders on crypto exchanges.
However, with reduced retail participation, these altcoins are struggling to gain enough liquidity to drive prices higher.
- 3 Altcoins That Crypto Whales Are Targeting in May 2025
- 3 US Altcoins That Will Attract Attention in Late April 2025
- Three Meme Coins That Are Catching the Market’s Attention Today
- Cardano (ADA) Moving Sideways. Are Signs of a Bullish Turn Emerging?
- Crypto Whale’s Favorite Altcoins in the Third Week of April 2025
Changing Market Dynamics
Traditionally, altcoin season occurs after Bitcoin hits its peak, with capital rotating into altcoins.
In this cycle, however, that pattern appears to be shifting. While some altcoins like Solana and meme coins are performing well, the majority of other altcoins are still lagging behind.
Conclusion
The altcoin season in 2025 may not arrive anytime soon due to Bitcoin’s dominance among institutional investors and the liquidity challenges faced by small-cap altcoins.
Investors are advised to closely monitor market developments and consider investment strategies that align with current conditions.
