In the volatile world of cryptocurrencies, altcoins have been largely sidelined for the past few years, with many investors waiting for the next explosive “altcoin season.” However, according to popular crypto analyst Michael van de Poppe, the signs are now aligning for a major altcoin rally in 2025, and the time for altcoins to shine might be closer than we think.

Key Signals Pointing Toward an Altcoin Comeback

Over the past quarters, altcoins have underperformed, with many seeing significant losses as Bitcoin and a select few assets took the spotlight. However, Michael van de Poppe believes that recent developments in global markets signal a major comeback for altcoins, as several factors are converging to create favorable conditions for a rally.

Increasing Global Liquidity and Market Recovery

One of the most important signals that the altcoin market is gearing up for a resurgence is the rise in global liquidity. Countries like China and the U.S. are increasing their money supply, while Europe has lowered its interest rates. Van de Poppe explains that when liquidity rises, investors typically turn to riskier assets like altcoins, which could drive prices up across the board.

As central banks and governments pump more money into the economy, cryptocurrencies—particularly altcoins—tend to perform well. With liquidity on the rise, van de Poppe sees a strong likelihood of an altcoin rally in the coming months, especially if other market conditions align.

Gold’s Slowdown Signals a Shift to Riskier Assets

Gold has historically been a safe haven during uncertain economic times, and its performance over the past few years has proven this trend. Since 2022, gold prices have surged by around 20%, attracting investors who sought refuge amid economic turbulence. However, van de Poppe notes that gold’s recent surge appears to be peaking, and as gold cools down, investors may begin to seek out higher returns in more volatile assets, such as altcoins.

This pattern isn’t new. In previous cycles, whenever gold slowed or plateaued, altcoins began to show signs of life. Van de Poppe suggests that the market is on the brink of a similar shift, with capital potentially flowing away from gold and into altcoins, giving the latter a chance to recover and rise sharply in value.

Chinese Currency Shows Key Turning Point

Another important indicator of an impending altcoin rally comes from the Chinese Renminbi (CNH) against the U.S. Dollar (USD). In past cycles, whenever the Chinese currency bottomed out, altcoins like Ethereum (ETH) saw major price increases. A similar pattern occurred in the summer of 2019, when the CNH/USD exchange rate hit a low, signaling the start of a two-year altcoin bull run.

Now, the CNH/USD is once again showing signs of weakness, with the Chinese currency experiencing a deep drop. If history repeats itself, this could signal that altcoins are on the verge of another bull run, with Ethereum and other prominent altcoins likely to see significant price gains.

The Growing Role of Institutions

Van de Poppe also points out that institutions are increasingly shaping the crypto market. Unlike the old four-year cycles that were largely driven by retail traders and speculative bubbles, the crypto market is now more influenced by large institutions with long-term strategies. With this institutional shift in focus, global liquidity and macroeconomic trends are becoming more important drivers of market movements, rather than just the historical patterns of previous bull and bear cycles.

The growing institutional interest in cryptocurrencies, including altcoins, suggests that the market could experience a much more sustained and well-supported rally than in previous years.

Shifting Focus Toward Altcoins

A recent survey conducted in Korea by CoinNess and Cratos indicates a shift in crypto investors’ focus. Out of 2,000 surveyed investors, 35.7% expect Bitcoin prices to remain stable, while around 31% predict a dip in Bitcoin prices. More importantly, 33% of respondents expect altcoins to outperform Bitcoin in the near term.

This change in investor sentiment reflects growing interest in altcoins, further bolstering van de Poppe’s prediction that altcoin season is approaching.

What to Expect in the Coming Months

According to van de Poppe, the next 12 to 18 months could be incredibly exciting for altcoins. The combination of rising global liquidity, the cooling of gold prices, a weak Chinese currency, and the increasing role of institutions suggests that altcoins could experience significant price gains.

While the market’s unpredictable nature means there are no guarantees, the signs are pointing toward a promising future for altcoins. Investors are advised to keep an eye on global economic developments and market trends, as the next altcoin season may just be around the corner.

Conclusion

Altcoins have endured a tough few years, but according to Michael van de Poppe and other analysts, the time for a major comeback might be approaching. With a combination of growing liquidity, shifting investor sentiment, and historical patterns pointing toward an altcoin rally, 2025 could be the year altcoins finally break free and deliver the returns many have been waiting for.