Altcoin Season 2025: 5 Key Indicators That Could Trigger a Major Crypto Rally

For those unfamiliar, an altcoin season, or “altseason,” refers to a period when altcoins (cryptocurrencies other than Bitcoin) outperform Bitcoin in terms of returns. It's a time when attention shifts from Bitcoin, and traders look for the next big altcoin opportunity.

However, predicting whether we’re on the verge of such a rally isn’t straightforward.

In this guide, AMBCrypto examines five crucial signals that could trigger the next altcoin boom. From market sentiment to on-chain data, these indicators could provide a competitive edge in 2025.

Whether you're an experienced investor or a newcomer, recognizing these trends could be key to staying ahead.

A Shift in Market Dominance: Altcoins vs. Bitcoin

Bitcoin Dominance (BTC.D), which represents Bitcoin’s share of the total crypto market, typically decreases during altseason as more capital flows into altcoins.

Currently, BTC.D is at 60.7%, up from 56.8% last month, while altcoin dominance has fallen to 29.3% from 31.3%. Ethereum's dominance has also dropped to 10.0%, down from 11.9%.

Bitcoin recently reached a yearly dominance peak of 61%, indicating its current market strength. Historically, altseasons often begin after Bitcoin dominance peaks and starts to decline, allowing altcoins to surge.

If Bitcoin’s dominance falls below 60% and altcoins gain momentum, it could signal the start of an altcoin rally. Monitoring this balance of dominance remains crucial.

Ethereum’s Role in Leading Altcoins

As the largest altcoin, Ethereum [ETH] often leads altseasons. When ETH/BTC rises, it signals Ethereum outperforming Bitcoin, which can set the stage for altcoins to follow.

Historically, Ethereum has initiated altcoin rallies, paving the way for mid-cap and low-cap coins to rise.

Currently, ETH/BTC is at 0.02716, reflecting a consistent decline since late December 2024. This indicates that altcoins are under pressure. However, a reversal in the ETH/BTC trend could ignite broader altcoin momentum. Watch for signs of stabilization and upward movement in this pair to confirm a potential altseason.

Altcoin Market Cap as an Indicator of Altseason

The total Altcoin Market Cap, currently around $265 billion, serves as a key indicator for altseason.

When this metric increases while Bitcoin remains stagnant or drops, it shows a shift of capital into altcoins, signaling rising investor confidence. Historical charts reveal cyclical surges in altcoin market cap that coincide with major rallies.

At present, the market is subdued, signaling caution. However, a breakout with volume could mark the start of an altseason, presenting profitable opportunities for traders. Monitoring this alongside ETH/BTC trends provides a comprehensive view of the altcoin market outlook.

Trump’s Shift in Crypto Policy

Recent U.S. crypto policy changes under President Donald Trump’s administration may create a favorable environment for altcoins like Ripple (XRP).

Notably, discussions about creating a national crypto reserve could prioritize U.S.-based digital assets such as XRP and Solana (SOL). Trump’s engagement with the founders of these cryptocurrencies indicates potential openness toward incorporating them into national policy.

These regulatory shifts could foster a more supportive environment for altcoins, potentially driving increased investment and growth in the altcoin market.

Crypto Airdrops and Social Media Hype

A strong indicator of an impending altseason is the rise in crypto airdrops and social media hype.

During these times, new projects launch aggressively through ICOs, and airdrops become more frequent, enticing traders with free token distributions.

On platforms like X (formerly Twitter), influencers and crypto enthusiasts amplify the buzz, proclaiming the arrival of “altseason.” Telegram and Discord communities are abuzz with discussions about the next 100x altcoin, as traders scramble to take advantage of profitable airdrop opportunities.

If crypto promotions flood your feed, it may be a sign that the market is preparing for a major rally.