Crypto Users Optimistic as Analysts Predict Upcoming Altcoin Season
Crypto users are growing increasingly optimistic that an altcoin season will kick off soon. A prominent cryptocurrency analyst has pointed to a falling Bitcoin dominance as the initial signal indicating an impending altcoin rally. Additionally, prevailing monetary policies and the potential reopening of the US government could serve as catalysts for the next altseason.
Key Reasons for Optimism About an Upcoming Altcoin Season
In his latest podcast, the analyst highlighted several reasons why users remain positive about the prospects of an altcoin surge. He noted that the current bull cycle differs from previous ones, with the crypto market exhibiting some irregularities in how individual digital assets are moving.
Bitcoin Dominance: The First Indicator
According to the analyst, the first sign boosting confidence in an upcoming altcoin season is a declining Bitcoin dominance. He described this falling dominance as the initial indication that altcoins are gaining momentum within the cryptocurrency market.
Data from CoinMarketCap shows Bitcoin dominance has pulled back from around 65.00% in June 2025 to approximately 59.77% at the time of writing. The analyst bases his opinion on Bitcoin’s historical dominance trends, explaining that changes in this metric often precede shifts in overall market trends.
The analyst explained that Bitcoin dominance tends to fall when Bitcoin’s price declines faster than the rest of the market or when altcoins outperform Bitcoin by rising at a faster pace.
US Monetary Policy and Government Reopening as Catalysts
The analyst also identified US monetary policy as a key factor to watch. He pointed to December 1, 2025, the date on which the US Federal Reserve plans to end Quantitative Tightening, as potentially pivotal for the crypto market.
He explained that this event will require the Fed to tighten liquidity by withdrawing money from the market. This tightening could, paradoxically, boost demand for digital assets. However, the analyst emphasized that large-cap cryptocurrencies are likely to be the initial beneficiaries of the Fed’s actions. This would eventually lead to a downward liquidity cascade that positively affects lower-ranked cryptocurrencies.
In addition to monetary policy, the analyst highlighted the potential reopening of the US government as another important signal. He noted the government’s significant role in daily economic activities and stressed that government operations underpin the global economy.
Ending the current government shutdown, according to the analyst, would relieve strains on various economic sectors and provide a boost to financial markets — including the cryptocurrency sector.
Conclusion
With these factors in play, crypto users and analysts alike are hopeful that an altcoin season is on the horizon. Investors are closely monitoring Bitcoin dominance, upcoming Federal Reserve policies, and US government developments to assess how these dynamics might influence the crypto market.
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