#NFPCryptoImpact
🔥 Why 2025 is set to be the year of the altcoin?
Last year saw a breakout surge in bitcoin, but 2025 is set for outperformance in other segments of the crypto market, industry experts say.
With bitcoin trading in a sideways range in recent weeks and traders looking for fresh catalysts to push the token higher, analysts and commentators say altcoins—any cryptos that aren't bitcoin, essentially—are poised to rally this year on the promise of less regulation of digital assets under Donald Trump.
Bitcoin soared 116% in 2024, riding a wave of enthusiasm for developments such as the approval of bitcoin ETFs, the halving event in April, and Trump's election win in November.
Bitcoin crossed the $100,000 threshold for the first time and gained 51% in just a month. Altcoins similarly surged, with ethereum up 59%, and other tokens like XRP, solana, and tron also seeing strong gains.
But bitcoin's rally has slowed following hawkish commentary from the Federal Reserve, and other crypto coins are showing signs of continued momentum.
The hawkish tilt from the central bank triggered a broad market selloff in US stocks after their November rally, and bitcoin wasn't spared, losing around 15% in the last two weeks of the year from its peak.
Other cryptocurrencies and altcoins have outperformed even more meaningfully, suggesting that some market participants are counting on an 'alt-season' coming to fruition in 2025 following a strong year for Bitcoin," the analysts said.
