Altcoin Season 2025: Why Analysts Say the Bear Market Is Finally Over
The cryptocurrency market is going through one of the longest and most difficult periods for altcoins. Many investors who have survived this period are suffering huge losses, with prices struggling to recover despite strong macro signals. Analyst Michael van de Poppe believes this period of exhaustion may be coming to an end.
The recent correction after the Federal Reserve’s last meeting has shaken market confidence, but the fundamentals suggest a turnaround is coming, he said . The Fed cut interest rates by 25 basis points and is expected to end its quantitative tightening policy on December 1. The move could mean the tightening phase of the cycle is almost over – a condition that historically marks the start of a new bull market.
The end of the tightening could mark a turning point
In previous cycles, similar monetary policy changes have triggered strong rallies in the crypto market. In 2020, when the Fed began cutting interest rates and implementing quantitative easing, Bitcoin and altcoins went on a strong bull run. On the other hand, tightening and rate hikes that began in late 2021 kicked off a bear market that investors are still feeling today.
This time, conditions are once again shifting. Inflation is no longer the Fed’s primary concern; jobs and economic growth are the priority. Weak labor and business data could force the Fed to cut interest rates further. This would boost liquidity and create a favorable environment for risk assets, including cryptocurrencies.
Gold peaks, risk assets set to move
Gold, which is often a signal of risk aversion, recently peaked and fell nearly 10%. Historically, when gold cools after a strong rally, money starts flowing back into risk assets like stocks and cryptocurrencies, said Van de Poppe.
Bitcoin is still hovering around $109,000, but its valuation relative to assets like gold and copper suggests it is undervalued. Van de Poppe predicts this lag will narrow as liquidity shifts, potentially taking Bitcoin to $150,000–$170,000 in the coming quarters.
As Bitcoin regains momentum, altcoins are likely to follow. Many smaller cryptocurrencies have shown signs of bullish divergence, a pattern that often marks the start of a recovery.
Setting up for the next Altseason
While the market reaction to the Fed meeting was negative in the short term, the longer-term outlook looks more favorable. The end of quantitative tightening, the possibility of interest rate cuts and the cooling gold market all point to a return of risk appetite.
This combination could mark the beginning of a new cycle. Altcoins, which have been in a deep correction for months, could finally see relief as Bitcoin breaks through key resistance around $112,000.