The cryptocurrency market is anticipating another altcoin boom, which has not yet materialized in the current bull cycle. According to a joint report by cryptocurrency exchange Bybit and research firm Block Scholes, several factors have delayed the onset of the altcoin season, but a major shift could occur in the coming months.

Catalysts for Altcoin Growth

Analysts highlight several key factors that could drive increased interest in alternative cryptocurrencies:

• Growing institutional interest in altcoins. Large funds and institutional investors are starting to pay more attention to digital assets beyond Bitcoin.
• Ethereum taking the lead. If Ether (ETH) can once again outperform BTC in growth, it could ignite a broader altcoin rally.
• Retail investors' enthusiasm for meme coins. Coins like Dogecoin and Shiba Inu continue to attract traders' attention, adding liquidity to the market.
• Bitcoin profit-taking. As BTC holders start taking profits, capital may begin to flow into other cryptocurrencies.

How Do Altcoin Seasons Happen?

Historically, during market uptrends, altcoins have outperformed Bitcoin in profitability. This is because investors gradually reallocate capital from BTC to riskier assets, leading to significant price surges. In previous bull cycles—2017 and 2021—this trend resulted in many altcoins reaching new all-time highs (ATHs).

However, Bybit experts emphasize that altcoin seasons often occur just before the end of a bull cycle. When investors start locking in profits from high-cap altcoins, it can trigger a market-wide correction.

Why Is This Cycle Different?

Despite expectations, altcoins have not yet shown significant growth in this bull cycle. One of the key differences is that BTC continues to set new ATHs while maintaining market dominance. In previous altcoin seasons, Bitcoin's market share typically declined about 230 days after a halving. However, the current market behavior suggests that this pattern may have changed.

According to Bybit analysts, some of the factors holding back altcoins include:

• The rise of institutional Bitcoin adoption through exchange-traded funds (ETFs), which strengthens BTC's position in the market.
• Ethereum's underperformance compared to Bitcoin and other major altcoins like Solana. This raises doubts about ETH's ability to lead the next altcoin cycle.

What Could Trigger the Next Altcoin Season?

Experts outline several factors that could lead to a surge in alternative cryptocurrencies:

1. Bitcoin profit-taking. If a significant number of investors start selling BTC, it could create conditions for capital to flow into other assets.
2. Ethereum recovery. ETH needs to show strong growth and regain investor confidence as one of the market’s leading assets.
3. Increased interest in meme coins. Trends show that during altcoin seasons, a substantial amount of liquidity moves into high-risk assets.
4. Greater institutional participation. Regulatory bodies in the U.S. are currently reviewing applications for several altcoin-focused ETFs, which could boost their market presence.

Conclusion

The cryptocurrency market is evolving, and historical patterns no longer guarantee the exact repetition of past scenarios. However, with key catalysts in place, altcoins could enter a new growth phase in the coming months. The outcome will depend on how capital is distributed between Bitcoin and alternative assets, as well as institutional investors' decisions to enter the market.

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