The altcoin market is poised for a major breakout — but what’s holding it back? appeared first on Coinpedia Fintech News
Cryptocurrency markets are trying to stabilize after the recent collapse that sent the price of Bitcoin below $110,000. Although the symbol has not yet recovered above the range, the bulls have prevented excessive downward movement. Meanwhile, other popular tokens also saw a slight rise, while the global market cap stands at around $3.61 trillion. The current market dynamics revolve around Bitcoin as its dominance is once again increasing. However, it is comparable to the phase of the third quarter of 2019, which witnessed the first collapse and structural collapse.
Similar to 2019, Bitcoin’s dominance appears to have reached a point of resistance, with further upward movement expected as levels rebound to the 20-week SMA. So, this was when the price of ETH and altcoins gained momentum. However, it should be considered that the final correction in dominance affected altcoins as well, as they fell hard during the bear market of 2022. However, the main difference this time is the returns of DeFi and L2 ecosystems, creating strong fundamentals for altcoins.
The altcoin market is at the foot of a major explosion.
Similar to Bitcoin, altcoins also follow a certain cycle, which helps determine the next potential price movement. The chart shared by the famous analyst Mustache, shows that the altcoin market capitalization has reached the support level, thus a recovery could be near.
The current cycle, starting in early 2024, has been characterized by three distinct phases of pumping and dumping rather than a sustained bull market.
- The first occurred in the first quarter of 2024, when liquidity returned briefly before fading as global tightening resumed.
- The second came during the period from November to December 2024, coinciding with gold entering a moderate correction, which temporarily shifted attention towards cryptocurrencies.
- The third spike occurred between May and August 2025, when Ethereum unexpectedly rose — driven in part by ETF inflows and treasury allocations — but again, the momentum did not continue.
Each time, the altcoin market rises sharply, only to decline once overall liquidity tightens or Bitcoin reasserts its dominance.
What’s needed for the next true Altcoin bull market?
For the altcoin market cap to finally cross the $1.7 trillion mark and maintain a long-term upward trend, several macro and regulatory conditions must align:
- The end of quantitative tightening (QT) and early signs of the return of quantitative easing (QE) to boost global liquidity.
- Interest rate cuts, enabling risk sentiment to return to the cryptocurrency market.
- Stabilizing gold and silver prices, which reduces competition for investors’ capital.
- Accelerate coding efforts, which will drive real benefit and institutional engagement.
- Approval of altcoin ETFs, a crucial but overdue step that could unleash new institutional flows.
Only when these catalysts converge can the altcoin market move from fragmented highs to a consolidated bull phase.
Source: https://coinpedia.org/price-analogy/altcoin-market-poised-for-major-breakout-but-whats-holding-it-back/