Altseason gains of 40% daily may become the new normal in 2025

Analysts are signaling the start of a new altcoin season, with some forecasting daily gains of up to 40 percent over the coming months.

Crypto commentator Mister Crypto highlighted a breakout from a downward trend in the altseason index, suggesting a shift away from Bitcoin dominance toward altcoins.

He noted on May 11 that the index moving above 29 points hints at altcoins gaining momentum, potentially outperforming Bitcoin in the near term.

However, some analysts caution this cycle differs from previous ones.

Trader 2Lambroz pointed out a lack of retail investor participation and a weaker narrative, with faster capital rotation and less incentive for long-term holding.

Technical trader Moustache offered a more optimistic view, comparing current altcoin accumulation patterns to those seen in 2016 and 2020, declaring “Altseason 2025 has officially begun.”

Skeptics like commentator Rekt Fencer remain cautious, noting that many altcoins have fallen 90 percent since December and recent gains may be exaggerated.

The broader crypto market rallied recently on global optimism, with Bitcoin (CRYPTO:BTC) rising to around $104,900, close to its all-time high, following positive US-China trade developments.

Ethereum (CRYPTO:ETH) also posted strong gains, contributing to a wider altcoin rebound and renewed risk appetite.

“Crypto rallied on a wave of global optimism,” said Hank Huang, CEO of Kronos Research, citing easing regional tensions and improved trade relations as key factors.

He added that Bitcoin’s surge to $105,000 reflected investors’ return to risk assets amid greater clarity.

Other sources indicate that Phase 2 of the altcoin season could bring typical daily gains of 20-25 percent for leading altcoins, with market watchers closely monitoring volume and price action.

The drop in Bitcoin dominance below 64 percent and strong performances by Ethereum, Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA) support the narrative of capital rotation into altcoins.

While enthusiasm grows, analysts advise caution given the unique macroeconomic environment and the absence of strong retail momentum seen in prior cycles.