Crypto analysts are speculating that the long-awaited altcoin season may be imminent, but current altcoin season indicators are presenting a different outlook.
Crypto analyst ‘Ash Crypto’ predicted that a “massive liquidity shift” later this year will trigger a “parabolic pump” for altcoins.
Despite Bitcoin (BTC) surging 680% from its November 2022 bear market low, and other major assets like tech stocks and gold reaching all-time highs, the majority of altcoins have experienced lackluster performance this year.
According to the analyst, investors are currently focusing on safe-haven assets due to trade tariff concerns and geopolitical tensions.
“So currently, the liquidity is only in low-risk assets, and if you look at 2017 and 2021, this is how a bull market always plays out.”
However, the analyst anticipates that with several Federal Reserve rate cuts expected and a general easing of monetary policy, liquidity will begin flowing back into risk assets. This shift is predicted to send BTC and Ether (ETH) to new peaks, with altcoins subsequently following suit.
Another analyst, digital asset investor ‘Crypto GEMs,’ shared a chart illustrating how the U.S. central bank's previous liquidity injections coincided with the start of altseasons.
The potential approval of over 150 altcoin exchange-traded funds by the SEC is also being considered as a possible catalyst for an altcoin season.
Altcoin Season Indexes at Bear Market Lows
Conversely, altcoin season index indicators are suggesting a different narrative, with most of them currently situated at bear market lows.
The Blockchain Center’s Altseason Index is presently at 35 out of 100, marking its lowest point since July.
CoinMarketCap’s altseason gauge is even lower, reporting a score of 24 and indicating that it is still a “Bitcoin season.” CryptoRank also shows a low of 24, while BitGet’s altcoin season index stands at 30.
Top-Performing Altcoins Are Few and Far Between
With the exception of a few outliers like Binance Coin (BNB) and Hyperliquid (HYPE), which have recently achieved all-time highs, most altcoins are trading at multi-year lows.
However, some altcoins have begun to show upward movement, including BNB, Solana (SOL), HYPE, Zcash (ZEC), and World Liberty Finance (WLFI), all outperforming the broader market, according to CoinGecko.