4 Key Reasons Why Altcoin Season Is Still on the Horizon

• Altcoin ETFs, Ethereum’s upgrade, and historical cycles suggest an imminent altcoin season.
• Leading altcoins like ETH, XRP, and BNB are showing strength, reinforcing bullish momentum.

Analysts are pointing to key indicators suggesting a historic altcoin season is significantly growing. As for a better context, CNF previously reported that Bitcoin ETFs are absorbing liquidity, reducing capital rotation into altcoinsand weakening the traditional altcoin season cycle.

As our event unfolds, market expert Ted recently shared in a tweet that the 2024 altcoin surge was just the beginning, predicting that 2025 will witness record-breaking altcoin gains. Similarly, CryptoGoos analyzed past cycles and found a pattern: major altcoin uptrends in 2017 and 2021 set the stage for another surge in 2025.

#Altcoins pump in Q4 2024 was just a teaser

The next pump in the alts will be historical.

▫️ Ethereum big upgrades

▫️ Staking feature in ETH ETFs

▫️ Multiple Altcoin ETFs approval

▫️ FTX distribution

▫️ Trump altcoins buy

All these factors will kickstart the next leg up… pic.twitter.com/lhnW9tg6KU

— Ted (@TedPillows) February 15, 2025

In addition, another crypto strategist, Shib Spain, has noted that February has historically been a strong month for altcoins. Supporting this claim, Max Brown recently stated, “Altseason starts in February,” reinforcing expectations of a market-wide breakout.

Four Key Drivers Fueling the Altcoin Surge

Specifically, in this article, we will dive deeper into the four Key Drivers Fueling the Altcoin Surge:

First, regulators are edging closer to approving multiple altcoin exchange-traded funds (ETFs). The SEC recently acknowledged Grayscale’s filings for XRP and Dogecoin ETFs, while Bloomberg analysts Eric Balchunas and James Seyffart predict that Litecoin’s ETF has a 90% approval probability.

Additionally, a potential shift in U.S. regulatory policy, particularly under a more crypto-friendly administration, could further boost ETF approvals and fuel an altcoin rally.

Ethereum’s Upcoming Pectra Upgrade

Second, Ethereum, the second-largest cryptocurrency, is undergoing a major upgrade. The Pectra update is set to launch on the Holesky testnet on February 24, followed by a mainnet release in April. After the previous price disappointment CNF previously reported, this upgrade is expected to enhance Ethereum’s efficiency and attract more institutional interest.

Third, Historical Market Cycles Favor Altcoins

Third, the historical trends indicate that altcoin seasons typically follow Bitcoin’s peak rallies. With Bitcoin approaching new highs, the stage is set for capital rotation into altcoins, mirroring past cycles where altcoins significantly outperformed after Bitcoin rallies.

Fourth, Strong Performance of Leading Altcoins

Fourth, despite market fluctuations, top altcoins are holding strong. As of now, Ethereum has risen 2.06% over the past week to $2,690, while XRP has surged 12%. Binance Coin (BNB) has also gained over 5%, reinforcing the argument that altcoins are gaining traction in anticipation of the next major cycle.

A Bullish Road Ahead for Altcoins

With key catalysts aligning—including ETF approvals, Ethereum’s upgrade, and historical market patterns—analysts remain optimistic about an imminent altcoin season.

As of now, Ethereum is trading at the price of $2,664.85, with a decrease of 1.24% in the past day and an increase of 1.28% in the past week. See Ethereum price chart below.