Market expert Lark Davis recently asserted on social media that, despite the broader crypto market facing short-term pullbacks and challenges, the much-anticipated altcoin season is far from over.

Davis believes there are significant opportunities in altcoins, especially as their total market capitalization (excluding Bitcoin and Ethereum) hovers around $1.05 trillion.

Key factors for the upcoming altcoin season

Experts point out that the current market cap of altcoins is nearing the previous high of $1.13 trillion from November 2021. He recalls a similar situation in February 2021 when the market cap of altcoins tested the peak since January 2018 before breaking through.


This breakthrough led to a surge from $360 billion in February 2021 to $1.13 trillion in November 2021, an increase of over 200%. Davis firmly believes that once the market cap of altcoins exceeds the $1.13 trillion threshold again, we may witness one of the largest altcoin seasons in cryptocurrency history.

Several key factors make Davis optimistic about the upcoming altcoin surge:

  • Bitcoin's performance: Currently at historical highs, the strength of Bitcoin's price often ignites interest in altcoins.

  • Political transition: With Donald Trump set to take office in just 34 days, market sentiment may shift towards cryptocurrencies.

  • Global interest rate cuts: Central banks worldwide are lowering interest rates, which typically increases market liquidity.

  • Increased capital investment: A significant influx of cheap capital is flowing into the cryptocurrency space, laying the groundwork for potential growth.

  • Risk appetite environment: The current market conditions represent one of the strongest environments for risk-appetite assets, creating an ideal backdrop for altcoin investment.

Anticipated rebound with increased Bitcoin dominance

Cryptocurrency analyst Miles Deutscher agrees with Davis, emphasizing that the real altcoin season has yet to begin. He points to compelling historical evidence suggesting that altcoin seasons are not coincidental but rather seasonal phenomena supported by statistical patterns.


Historically, Ethereum (ETH) has shown impressive returns from January to May, often outperforming Bitcoin during this period. In these months, Ethereum's average monthly return rate was around 28%, while the monthly return rate for the rest of the year was only 3%.

Moreover, analysts assert that the current environment is particularly favorable for this rotation, as Ethereum has historically outperformed Bitcoin by about 20% in monthly returns during altcoin seasons.

As Bitcoin's performance improves, the likelihood of capital flowing into Ethereum and other altcoins is also increasing. This rotation has already been observed in the recent surge of Bitcoin's dominance, echoing patterns seen during previous altcoin seasons around 2017 and 2021.