Altseason Signals Mixed as ETFs and Liquidity Could Influence Market
Crypto analysts are debating whether the long-awaited altcoin season is near, though current indicators suggest caution. Analyst Ash Crypto predicts a “massive liquidity shift” later this year that could trigger a “parabolic pump” for altcoins.
Despite Bitcoin (BTC) rallying 680% from its November 2022 bear market low, and other major assets like tech stocks and gold reaching record highs, most altcoins have remained relatively lackluster in 2025. According to Ash Crypto, investor focus has shifted toward safe-haven assets amid trade tariff concerns and geopolitical tensions. He commented, “So currently, the liquidity is only in low-risk assets, and if you look at 2017 and 2021, this is how a bull market always plays out.”
Looking ahead, easing monetary policy and several expected Federal Reserve rate cuts could send liquidity back into risk assets. “We will see liquidity flowing back to risk assets,” Ash Crypto added, predicting BTC and Ether (ETH) may reach new peaks, with altcoins following.
Another observer, Crypto GEMs, highlighted historical liquidity injections by the US central bank as key catalysts for previous altseasons. Additionally, over 150 altcoin ETFs pending SEC approval could further influence market momentum.
Altcoin Indexes Remain at Bear Market Lows
Current altcoin season indexes suggest the market is not yet in full altseason. The Blockchain Center’s Altseason Index stands at 35/100, its lowest since July. CoinMarketCap reports 24/100, labeling it “Bitcoin season”, while CryptoRank and Bitget’s indexes are at 24 and 30, respectively.
Top Performing Altcoins Are Limited
A handful of altcoins have bucked the trend. BNB ($1,122.53) and Hyperliquid (HYPE) recently hit all-time highs, while Solana (SOL $192.50), Zcash (ZEC $258.86), and World Liberty Finance (WLFI) are also outperforming the broader market. Most altcoins, however, remain at multi-year lows, highlighting the uneven recovery across the sector.
Overall, while analysts anticipate a potential altcoin surge later in the year, current on-chain indicators and indexes suggest caution, signaling that the market may still favor Bitcoin-dominated trends.
