Altcoin Season in 2025: Delayed but Still Coming, Experts Say

The discussion around an altcoin season in 2025 has been widespread, but it has yet to fully materialize. Throughout the year, various predictions have surfaced, but the expected surge in altcoins has repeatedly faltered or been short-lived. While some investors are becoming impatient or doubtful, many experts believe that the altcoin season is delayed rather than canceled.

Why Altcoin Season Has Been Delayed?

Bitcoin continues to dominate the market narrative this year, with its share of total crypto market capitalization reaching levels not seen since 2021. In May, Bitcoin’s dominance peaked above 65%, while its price surged past $111K, an all-time high. Historically, altcoin seasons tend to follow Bitcoin’s rallies, as traders rotate profits into smaller tokens seeking higher returns. But this cycle has defied the pattern.

One key reason for the delay is the nature of the current Bitcoin rally. Institutional investors have been putting a lot of money into Bitcoin because they see it as a safer choice during uncertain economic times. As Willy Chuang, co-founder of TrueNorth, explains, these big investors are cautious about altcoins because of worries over regulations, risks in smart contracts, and other uncertainties. Because Bitcoin is seen as safer and more reliable, it keeps attracting money, slowing down the shift to altcoins many expected.

The situation is made more complicated by many new tokens entering the market, all competing for limited investor funds. This spreads attention thin and encourages short-term trading based on hype instead of focusing on projects with lasting value. Gustavo H. from Kairon Labs points out that the rise of Bitcoin spot ETFs has directed more money into Bitcoin itself, making it harder for altcoins to attract big investments. As a result, the altcoin season is delayed, with capital staying mostly in Bitcoin.

Early Indicators of a Shift Toward Altcoins

Despite current challenges, experts widely agree that altcoin season is not over, just temporarily on hold. Today’s market landscape is notably different from previous cycles, especially with institutional tools like ETFs changing how liquidity moves. As quantitative tightening starts to ease and the potential for new capital emerges, risk appetite has historically broadened beyond Bitcoin.

Tracy Jin, COO of MEXC, points to early signs of capital rotation, with Ethereum ETF inflows recently surpassing Bitcoin outflows. This growing institutional interest suggests a gradual recovery, with some altcoins showing notable gains. While Bitcoin’s dominance remains high, it’s beginning to weaken, a key signal that often precedes a full altcoin rally.

What stands out is the increasing adoption of altcoin treasury strategies by companies, showing growing confidence beyond just retail investors. If this trend continues and institutional allocations rise, the market could see a sharper rotation ahead. While nothing is guaranteed, late 2025 or early 2026 is emerging as a likely window for altcoins to gain momentum.

What Could Cause a Full Altcoin Season Soon?

For altcoins to regain momentum, several key conditions need to fall into place. First, liquidity conditions must improve with either a slowdown in new token issuance or a fresh inflow of capital large enough to support smaller, riskier assets. Second, Bitcoin’s price action needs to stabilize. Historically, extended periods of consolidation at elevated levels have created favorable conditions for altcoin growth, as investors pursue higher returns through more volatile “beta” assets.

Growing institutional interest in altcoins, seen in ETF filings and treasury diversification strategies, may further accelerate this shift. As market risk appetite increases, investors often turn their attention beyond Bitcoin’s relative stability to projects offering novel technologies or practical use cases.

While the exact timing remains uncertain, the broader setup is becoming clearer: a combination of macroeconomic easing, ETF-driven confidence, and shifting investor sentiment could pave the way for a long-anticipated altcoin season.

Possible Market Direction

While the altcoin season of 2025 has not yet arrived in full force, the evidence suggests it’s more a matter of timing than cancellation. Bitcoin’s rally has understandably delayed capital rotation into altcoins. Still, experts believe a resurgence is possible as market conditions change.

Patience is important right now, and watching trends in Bitcoin dominance, ETF activity, and institutional interest will give clear signs of when altcoins might start gaining momentum again. If history repeats itself, this delay could lead to a strong market shift.