TLDR
- Altcoin dominance mirrors 2017 pattern and could be on the verge of major breakout
- Total crypto market cap excluding Bitcoin retested key support near $1.49 trillion
- Recent rate cuts and improved regulatory landscape support bullish altcoin momentum
- Inflation dropping below 2% creates favorable conditions for risk assets
- Bitcoin’s historical September dip typically leads to Q4 gains, potentially benefiting altcoins
The cryptocurrency market appears to be setting up for what could be a significant altcoin rally in the final quarter of 2025, according to multiple market indicators and historical patterns.
Market observers have noted that Q3 altcoin performance was underwhelming, with only a few cryptocurrencies making notable gains. The second half of September brought bearish pressure that dampened overall sentiment.
However, as 2025 enters its final three months, altcoin season expectations have returned with renewed force. The current market structure displays striking similarities to the 2017 bull run.
In fact, the altcoin dominance chart reveals a slight declining curve followed by what appears to be the beginning of a potential breakout phase, much like what happened in 2017 before altcoins exploded in value.
This pattern coincides with the altcoin market cap recently finding support at a key level. Last Thursday, the total cryptocurrency market capitalization excluding Bitcoin dropped to $1.49 trillion before bouncing back.
This price level has proven historically important, serving as resistance during the May and December 2021 market tops before converting to support. The market previously bounced from this same level on August 19.
Market analysts point out that maintaining this support is crucial for altcoin momentum. Falling below could trigger capitulation, while holding above could confirm the continuation of the broader bull trend.
Rate Cuts and Regulatory Shifts
One key difference between current market conditions and the 2021 cycle is the recent rate cut announcement. This monetary policy shift suggests improved liquidity conditions ahead, potentially driving more capital into the altcoin space.
Lower interest rates typically make it cheaper to access money, which can increase investment flows into more speculative assets like altcoins.
The regulatory environment has also evolved favorably throughout 2025. With the U.S. government taking a more embracing approach to crypto, barriers to liquidity flows have decreased.
These pro-crypto regulatory developments have established a foundation for easier and more substantial capital inflows into the market.
Institutional participation in altcoins is also on the rise. The SEC is expected to make decisions on multiple altcoin ETF applications during Q4, which could open the door for more traditional finance players to enter the market.
Macroeconomic Support
Latest economic data shows U.S. inflation dropping below 2%, which could trigger further monetary easing. This environment typically benefits risk assets, including cryptocurrencies.
The dollar index (DXY) is approaching the key 100 level, which may influence crypto markets in the near term. Historically, a strengthening dollar has been bearish for crypto assets, while dollar weakness tends to support higher crypto prices.
Bitcoin’s seasonal patterns also suggest a positive outlook for Q4. September has historically been a weak month for Bitcoin, but this is typically followed by stronger performance in the final quarter of the year.
As Bitcoin stabilizes and potentially moves higher, altcoins often follow with even larger percentage gains, fueling what market participants call “altcoin season.”
Some high-profile figures have made bold predictions about crypto prices, with Binance founder CZ suggesting Bitcoin could reach between $500,000 and $1,000,000 this cycle, while Eric Trump has called for Ethereum to hit $8,000.
The altcoin market may experience volatility in the coming months, with potential pullbacks even during a broader uptrend. Market participants should watch the $1.49 trillion support level and dollar strength as key indicators for altcoin performance heading into the final stretch of 2025.
The altcoin market’s last test of support succeeded, potentially setting the stage for a strong finish to 2025 as favorable monetary policy, improved regulations, and seasonal trends align.
The post Altcoin Market Poised for Q4 Growth as Key Indicators Mirror 2017 Patterns appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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