2025 Altcoin Season: Why Analysts Say the Next Crypto Rotation Is Near

The idea of another altcoin season has divided the crypto community in 2025. Many investors have begun to doubt whether a strong altcoin rally will ever return. Yet, a few catalysts hint that the next big wave of altcoin rotation could be closer than most expect.

The recent deleveraging event on October 10 caused Bitcoin to drop by nearly 20%, while several altcoins fell by over 70%. Although bearish, this purge helped flush out excessive leverage and weak positions across the market. This reset has created healthier conditions for a new cycle.

Roughly half of all altcoins saw their liquidity or trading activity collapse, forcing an industry-wide clean-up. Such events have historically paved the way for the next leg up, similar to how the 2020 crash preceded the 2021 bull market. This time, however, experts say the rally will likely favor stronger, fundamentally backed projects rather than speculative tokens.

Another signal comes from the Bitcoin dominance metric, which now sits below 60%. This number shows the percentage of total crypto market capitalization held in Bitcoin. Historically, when dominance drops below 54%, it often triggers a rotation into altcoins.

investors might be preparing to move profits from Bitcoin into alternative assets like Ethereum, Solana, and Cardano.

Beyond trading metrics, another driver for altcoin season lies in real-world adoption and infrastructure growth. Sectors like decentralized finance (DeFi), tokenization of real-world assets (RWA), and layer-2 scaling are expanding rapidly. As projects mature, they are becoming less speculative and more tied to actual use cases.

Players such as BlackRock have shown increasing interest in digital asset products and tokenized investment platforms, adding more legitimacy to the space.