#TopContentChallenge#  Altcoin Season 2025: When, How, and Which Tokens to Watch?

The cryptocurrency market is undergoing a transformation and is poised to witness the first full-fledged altcoin season of 2025. The flow of supply from Bitcoin to Ethereum and other altcoins is currently trending upward.

The question is: When should the market expect an altcoin season, and which tokens should investors pay attention to?

The Altcoin Season Everyone Is Waiting For

The cryptocurrency market is currently in a transitional phase, halfway toward declaring an altcoin season. An altcoin season is officially recognized when more than 75% of the top 50 cryptocurrencies outperform Bitcoin.

Currently, this percentage stands at 49%, indicating that the market is moving toward altcoin dominance but has not yet fully transitioned. As more altcoins gain momentum against Bitcoin, investor sentiment is beginning to shift, which could lead to an altcoin season in the near future.

This halfway mark suggests that the altcoin market is still in a price stagnation phase, with some tokens beginning to outperform Bitcoin, but this could happen before the end of the second quarter of 2025.

Macroeconomic factors are crucial in determining crypto asset movements.

Macroeconomics are crucial for investors to transition from risk aversion to risk acceptance. This is why there is a strong inverse correlation between gold and Ethereum. When gold consolidates, riskier assets like Ethereum begin to gain ground. Conversely, when gold rises strongly, it typically indicates a period when altcoins are underperforming. Furthermore, crypto-specific excitement has increased recently, but also due to the approval of regulatory regulations in the US.

Bitcoin's dominance has begun to regain momentum after a 6.1% drop earlier this month. The decline in Bitcoin's dominance was initially seen as a signal that an altcoin season was approaching.

Historically, Bitcoin's declining dominance indicates that altcoins are outperforming the leading cryptocurrency, leading to broader market growth. However, if Bitcoin's dominance regains momentum, the market could shift back to Bitcoin's influence. This could delay the arrival of an altcoin season. This will likely be driven by macroeconomic factors.

If altcoin markets fail to maintain their upward momentum, it will primarily be due to factors external to the crypto markets, just as everything else in the crypto markets has been negative over the last six months because the macroeconomic landscape has completely changed. If this risk-averse appetite returns to the market, perhaps due to trade wars, actual wars, or a potential recession, we could see altcoin markets decline again. However, conversely, we will see a strong bullish market.

Ethereum on the Road to Gain

Ethereum's price has increased by 55% since the beginning of the month and is approaching the $4,000 level. This growth, driven by the capital shift from Bitcoin to Ethereum, is attracting investors seeking higher returns.

Ethereum has outperformed Bitcoin by more than 70%, indicating that we are now in an Ethereum market. This sudden shift is driven by regulatory changes in the United States. The passage of the GENIUS Act and the CLARITY Act has opened the door for institutional liquidity to flow into Ethereum, as the Ethereum ETF has seen greater inflows than the Bitcoin ETF in recent weeks.

The recent growth in Ethereum could benefit altcoins built on its second-generation blockchain. These coins could be standout performers during the altcoin season, which investors should pay close attention to.

"Cins that benefit the Ethereum ecosystem (Aave, Optimism, Celestia, Arbitrum) are highly likely to thrive when Ethereum performs well. Furthermore, tokens with US ties will likely outperform others due to the excitement attached to them."

The positive momentum surrounding Ethereum is expected to push its price toward the $4,000 level and potentially beyond. With the continued influx of capital from Bitcoin, Ethereum could reach new highs and impact the broader cryptocurrency market. Investors are looking for signs of further upward movement led by Ethereum.