The cycle of altcoins is bound to come, unless Ethereum can consistently break through its upward momentum. Because Ethereum itself represents the ecosystem of altcoins.
As the price of Bitcoin and market funds continue to rise, these funds will eventually flow into other coins, triggering stronger FOMO sentiments to attract retail investors globally.
Looking ahead to the altcoin market in 2025, we need to rely not only on the launch of altcoin ETFs but also pay attention to the strength of interest rate cut policies.
Currently, the trends of Bitcoin and altcoins have shown polarization; it is without a doubt that Bitcoin will break new highs, but the performance of altcoins will depend on whether funds can spill over from Bitcoin.
The possibility of interest rate cuts in the future is relatively high, especially around March. If the economic data from January to March is strong, the U.S. may continue to cut interest rates.
If interest rate cuts are delayed, the flow of market funds may be affected, institutional funds may remain cautious, while retail investors may face greater risks due to capital outflows.