- Macroeconomic pressures and tariff fears have dashed hopes for an altcoin season following Trump’s 2025 election, with recovery potentially delayed until the second half of the year.
- Bitcoin’s decline is less severe than that of altcoins like XRP, Dogecoin, and Cardano, which have all dropped over 15% in the past week.
- CryptoQuant CEO Ki Young Ju suggests that ETF approvals could be key to reviving selective altcoin performance.
As the crypto market recoils from one of the harshest sell-offs in recent history, many in the community may be looking to rethink their portfolios.
Although Bitcoin has been far from impervious to the wave of red across the market, its fall is a far cry compared to prominent altcoins like XRP, Dogecoin and Cardano which have all dropped over 15% in the last week of trading.
Any hope of an altcoin season spurred by Donald Trump’s election in 2025 has quickly been dashed following macroeconomic pressures and tariff fears. So, we must sadly look to the second half of the year for a potential revitalisation.
According to CryptoQuant CEO Ki Young Ju, alt season may not be completely dead in the water for 2025 — but it might not be as all-encompassing as some might hope.
Related: Exposed: Coffeezilla Uncovers Memecoin Mastermind’s Confession of Widespread Market Manipulation
ETF Approvals Could be Key to ‘Selective’ Altcoin Season
The past week’s crash has seen 24% of the crypto market’s top 200 coins retrace behind their 12-month lows, indicating that altcoin season is well and truly off the table for Q1 2025.
However, Ki Young Ju believes that three key drivers will separate the riff from the raff when…if…market conditions turn.
By being incredibly selective with altcoin investment, the current market dynamics might actually present opportunities for the shrewd investor.
The key catalyst for 2025 altcoin performance, according to Young Ju, will be ETF approvals.
The Securities and Exchange Commission appears set to greenlight a slate of altcoin exchange-traded funds in the US over the year, likely starting with Litecoin.
In fact, the past day has seen only a handful of crypto projects start to recover – and LTC is leading the charge.
This backs up Ki Young Ju’s point that SEC approval may be the necessary news event to breathe life back into the altcoin market.
The Days of Endless Green May Be Over as Crypto Market Starts to Grow Up
However, as Young Ju points out, the days of every random project pumping to ridiculous heights may be over.
This is probably a bittersweet moment for the industry. While it’s fun to wake up to cryptocurrencies with no function, development team or long-term future gaining 100%, the reality is it’s unsustainable.
The sign of a maturing industry is an emphasis on performance-based…performance, and with institutions flocking to the sector, crypto projects will need to prove themselves before investors decide to jump on board.
But the offshoot of bigger investors stepping in means that the losers will be hit hard, and a lot of projects — new and old — may end up disappearing into the ether.
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