This Altcoin Season Index Is Already The Best Ever – What Stablecoins Tell Us About How High It Could Go
The post This Altcoin Season Index Is Already The Best Ever – What Stablecoins Tell Us About How High It Could Go appeared on BitcoinEthereumNews.com.
As Bitcoin passes through yet another all time high, smart investors are actually looking at stablecoin reserves as a leading indicator of how the altcoin market can go in 2025. As Bitcoin (BTC) once again hits a new all time high, altcoins are riding a wave of optimism. Smaller cryptocurrencies are quietly positioning themselves for explosive growth. This pattern isn’t new. When BTC makes aggressive moves, altcoins often wait before stealing the spotlight. The idea of capital rotation keeps this cycle predictable. At the heart of this phenomenon is the Altcoin Season Index, which currently reads 67, according to Blockchain Center. Although this is a drop from its recent high of 90, it signals that altcoin momentum isn’t finished yet. Historically, a reading above 60 means big rallies are coming for altcoins. In fact, analysts believe that March could mark the apex of this cycle, driven by increasing demand and funds flowing from Bitcoin to smaller, low-cap coins. Source: Blockchain Center Analysts Predict Tether Surge Fuels 2025 Boom Stablecoins play a crucial role in these trends. They act as a safety net, provide liquidity, and grease the wheels of decentralized finance (DeFi). Over the last three months, Tether (USDT) reserves on exchanges have surged. When stablecoin flows spike, it usually signals that buyers are ready to make their move. Source: CryptoQuant This isn’t just theory. Looking back at the 2020-21 bull run, increased Tether reserves matched a full-blown altcoin season. In February 2021, Tether’s reserves jumped sharply, mirroring what’s happening now. If history repeats, the real fireworks might not arrive until Q2 or Q4 of 2025. The altcoin market cap (excluding Ethereum) soared to $1.12 trillion in 2021, reaching the 223.6% Fibonacci extension level. Based on this, analysts are eyeing a 2025 target of $3.47 trillion. If trends hold, the…
Filed under: News - @ December 16, 2024 7:08 am