Is the Altcoin Season Over in 2025? Experts Believe It’s Just Delayed Not Dead

In 2025, predictions of an impending altcoin season have circulated numerous times. Yet, none have come to fruition. While some market watchers continue to hold out hope for a resurgence, others are growing increasingly skeptical.

BeInCrypto consulted several experts to discuss the potential for an altcoin season in this cycle. They agree that while the altseason has been delayed, it is far from dead.

What’s Holding Back the Altcoin Season in 2025?

Bitcoin (BTC) has been leading the charge in the current crypto cycle, with its market dominance steadily rising. In May, it reached 65.3%, the highest level since 2021. While BTC.D briefly dipped mid-month, it bounced back and stood at 63.9% at press time.

At the same time, BTC’s price has also appreciated significantly, hitting an all-time high of over $111,800 last month. Historically, altcoin seasons follow Bitcoin’s rallies as capital rotates into smaller coins.

While some coins have seen strong gains recently, they have been isolated. Furthermore, Coinglass data showed that the Altcoin Season Index stood at just 16 at press time. 

This has raised concerns over why the pattern of capital rotation has not been repeated. Willy Chuang, co-founder of TrueNorth, outlined the factors behind the delay. He noted that institutional investors are largely driving the current Bitcoin rally, and they have minimal interest in altcoins.

“BTC remains the consensus trade. As long as sentiment favors Bitcoin as the “safe bet,” capital rotation into altcoins will be muted. Moreover, structural risks, such as smart contract vulnerabilities, regulatory uncertainty, and operational failures—make altcoins less attractive for sidelined capital,” Chuang told BeInCrypto.

The executive also acknowledged the isolated outperformance of meme coins during their short-lived pumps. Nonetheless, he claimed that broader market rotation is being hindered by macroeconomic uncertainty, reduced liquidity, and a growing preference for short-term flipping over long-term altcoin holding. 

According to him, many now view the traditional altcoin model, with its high centralization and team-driven execution risks, as structurally flawed.

Gustavo H., Senior Business Development at Kairon Labs, shared a similar perspective. He emphasized that Bitcoin’s growth is primarily driven by an influx of institutional investments and clearer regulatory clarity around spot ETFs.

Gustavo explained that ETF trading volumes funnel liquidity toward Bitcoin, increasing its share of the overall market depth and reducing liquidity for altcoins. This has the effect of widening bid-ask spreads, making it less attractive for large investments in smaller assets and further reinforcing Bitcoin’s dominance.

“Spot ETFs give investors direct BTC exposure; in prior cycles, alts were the proxy. With institutions still building BTC positions, the rotation clock has effectively been reset. Retail, meanwhile, remains cautious after the 2022–23 deleveraging,” Gustavo said.

Both experts also pointed to the surge in new tokens as a significant factor. Chuang highlighted that this dilutes capital and investor attention.

“Liquidity is now spread thin, yet 98% of total market capitalization is still locked in the top 100 coins, underscoring how little capital reaches new projects. Low switching costs push traders to chase short‑lived narratives, while many founders optimize for rapid token‑price spikes over durable utility conditions that suppress a broad, sustained rotation,” Gustavo added.

Why Altcoin Season 2025 May Still Become a Reality

Despite these factors, experts believe there’s still potential for an upcoming altcoin season.

“The conditions point to a delayed, not defunct, altcoin season,” Chuang remarked. 

He believes that Bitcoin’s current outperformance is likely to continue in the near term. However, Chuang anticipates that an altcoin resurgence could emerge following the potential end of quantitative tightening (QT) and the start of a new quantitative easing (QE) cycle.

“A postponement is more plausible. Once BTC establishes a range, risk appetite historically shifts outward,” Gustavo noted.

He stated that an altcoin season is more likely to be delayed than completely ruled out until the growth in new token supply slows or new liquidity increases to match it. Gustavo believes that, over time, this market shake-out will reward teams that achieve genuine product-market fit.

Additionally, the executive affirmed that once ETF demand stabilizes and Bitcoin’s volatility compresses, capital typically shifts to higher-beta assets. 

“Consequently, an alt‑season in late‑2025 or early‑2026 remains plausible rather than pre‑ordained,” he predicted.

Notably, Tracy Jin, COO of MEXC, revealed that the signs have already started emerging.

“The sharp contrast in ETF flows is one of the most telling signs of the beginning of capital rotation on the market. Ethereum’s ETFs have recorded 11 consecutive days of inflows totaling over $630 million against the choppy macroeconomic and geopolitical tension backdrop, whilst Bitcoin ETFs have seen three straight days of outflows bleeding over $1.2 billion,” Jin disclosed to BeInCrypto.

She also referred to the increase in altcoin ETF applications and corporations adopting altcoin treasury strategies. Jin stressed that this signals a growing institutional interest in alternatives to Bitcoin as the market cycle advances.

The MEXC COO noted that while recent altcoin rallies have been encouraging, a true altseason usually begins when Bitcoin’s dominance declines more significantly. Despite the current recovery in risk appetite, Bitcoin still holds a large market share, though its dominance appears to weaken.

“Ethereum is decisively leading the charge for transition and capital rotation into altcoins in this current market cycle, and other coins like XMR, ENA, HYPE, AAVE, and ARB are following suit, posting more than 5% gains in contrast to BTC’s muted 0.6% gain during Tuesday’s recovery rally,” she stated.

In addition, Jin claimed that Bitcoin’s consolidation at high levels typically creates space for altcoins to perform, especially when risk-on sentiment grows and investors seek higher beta opportunities. With Bitcoin stabilizing after 25 consecutive days above the $100,000 mark, she suggested that the start of a real altseason may be closer.

“If the current altcoin momentum persists and institutional appetite builds further, we might witness an explosive movement across high-potential altcoins in the coming weeks,” Jin forecasted.

While altseason may not be in full effect yet, Jin emphasized that the conditions are aligning. She also revealed that this time, institutional capital is joining the journey.