Altcoins on Brink of Historic Comeback as Market Signals Point to Longest Altseason Yet

Altcoins have entered a technical condition that many traders and analysts are describing as "oversold," with key indicators suggesting a potential reversal in their fortunes. The total altcoin market cap excluding Bitcoin and Ethereum (often tracked via the TOTAL3 index) has reached levels last seen during major market downturns such as the 2022 FTX collapse and the 2020–2021 volatility caused by global events. Analyst Rekt Fencer highlighted that altcoins are currently more oversold than during these pivotal moments, with the OTHERS/ETH ratio hitting an extreme bottom on a two-week chart [4]. This has led to speculation that an altseason—periods when altcoins outperform Bitcoin—could be on the horizon, with historical precedents showing similar conditions preceding sharp rebounds of over 125–166% in past cycles [4].

Bitcoin dominance (BTC.D), a widely followed metric indicating Bitcoin’s share of the total cryptocurrency market, has recently shown signs of weakening. Traders often interpret a sustained decline in BTC.D as confirmation that capital is shifting from Bitcoin to altcoins [1]. At the moment, BTC.D remains stable around 60%, which is still historically high, but the broader altcoin market is showing signs of strength. The ETHBTC and TOTAL3 metrics are particularly important in this context, as they reflect the relative performance of altcoins against Bitcoin [1]. If BTC.D continues to trend lower while ETHBTC and TOTAL3 rise, this would confirm the emergence of an altseason and signal an opportunity for investors to rebalance their holdings toward altcoins.

The potential altseason is also being fueled by broader macroeconomic trends. The U.S. Federal Reserve is expected to continue rate cuts through the end of 2025, a move that historically encourages liquidity to flow into risk-on assets like cryptocurrencies [3]. Traders are particularly watching the Fed’s next meeting on September 17, 2025, where another rate cut is expected. These cuts may boost investor sentiment, especially among those seeking higher returns from altcoins after Bitcoin stabilizes [3]. Some analysts, including Sensei, believe these developments could lead to the longest and most powerful altseason on record, potentially lasting through early 2026 [3].

In addition to macroeconomic factors, specific altcoins are showing promising technical and fundamental signals. Solana (SOL-USD), for example, has seen strong institutional adoption and is preparing for the Alpenglow upgrade, which will improve transaction speed and enable AI applications on its network [5]. XRP, meanwhile, has recently broken through key resistance levels and is supported by growing institutional interest, including a new partnership with B3 Network [5]. These developments suggest that certain high-cap altcoins may lead the next wave of gains if an altseason materializes.

While the market appears to be preparing for a shift, it is not without caveats. Ethereum (ETH) dominance remains slightly below 14%, and altseasons historically begin when this metric rises closer to 16% [4]. Additionally, Bitcoin dominance has not yet broken below critical levels that have historically signaled a full rotation into altcoins. Investors are advised to monitor these metrics closely and wait for clear breakdowns in BTC.D, coupled with strength in ETHBTC and TOTAL3, before increasing exposure to altcoins [1]. Those who act prematurely risk missing the optimal entry point or facing unexpected volatility if Bitcoin regains control over the market.

Source:

[1] BTC Dominance BTC.D Flashes Altseason Signal in 2025 (https://blockchain.news/flashnews/btc-dominance-btc-d-flashes-altseason-signal-in-2025-what-traders-should-watch-now)

[2] What is Altcoin Season? When is Altseason in September ... (https://tangem.com/en/blog/post/what-is-altseason/)

[3] 'The Biggest AltSeason Will Start Next Week' -Will Altcoins ... (https://coinpedia.org/price-analysis/the-biggest-altseason-will-start-next-week-will-altcoins-outperform-bitcoin/)

[4] Here's the EXACT Reason Why Altseason Is About to ... (https://captainaltcoin.com/heres-the-exact-reason-why-altseason-is-about-to-begin-but-theres-a-catch-for-eth-and-btc-traders/)

[5] Google Gemini Predicts Bullish Moves for XRP and Solana (https://oiyas.com/google-gemini-predicts-bullish-moves-for-xrp-and-solana/)