Altcoin prices are heading into a historically massive crypto market rally, with analysts expecting the market cap to quintuple from its current level to reach $7 trillion. Analyst Bhushan Akolkar says strong technical structures suggest a bull market-like breakout similar to 2021 is imminent.
Are Altcoins Preparing for a 5x Rally?
Crypto market analysts expect altcoins to start a major bull rally in the first quarter of 2025 as technical chart analysis shows similarities to the period before the bull rally in 2021. The chart below combines the market peaks of the 2018 and 2021 bull runs, predicting that the next peak could be around $7 trillion. In December 2024, the market will experience major volatility as the Bitcoin price fluctuates between $90,000 and $110,000.
The current value of the entire cryptocurrency market, excluding Bitcoin, is around $1.5 trillion. However, the current situation shows that there is a strong bottom formation, which indicates that the correction of altcoins may be over. In addition, the altcoin season index has formed a strong base at 47 after falling to 88 on December 4. With Bitcoin dominance falling, this index is expected to recover upwards.
Today’s market action is providing positive feedback to most of the top altcoins, especially XRP, and this is creating strong upward momentum. XRP’s 15% increase is supported by 6-10% appreciation in other major cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Avalanche (AVAX). Therefore, the beginning of 2025 is showing a strong performance with the general optimism of the market. In its 2025 forecast, Steno Research expects Bitcoin to exceed $150,000 and Ethereum to exceed $8,000. Analysts are also expressing increasing optimism about the upcoming altcoin season.
These bullish predictions for Bitcoin and Ethereum stem from a regulatory environment that is extremely favorable for cryptocurrency markets. There is also a macroeconomic backdrop supported by falling interest rates. These factors are combined with expectations for improved liquidity. The report also notes that the years following Bitcoin’s halving are generally bullish. The report states:
“This rally will be further supported by unprecedented levels of institutional adoption and significant inflows into US-based Bitcoin and Ethereum ETFs.”
According to analysts, AI-based tools and tokens like ai16z are expected to increase their market dominance in January 2025. In addition, important crypto events such as token unlocks and the approaching Solana ETF approval date stand out as critical developments that will determine the direction of the market.