
Key Points
- Q2 2025 Could Be the Best Time to Buy Altcoins
- Altcoin market cap is down 40%, offering potential buying opportunities
- Bitcoin Dominance nearing 70% could trigger an altcoin rally
- Analysts advise focusing on altcoins with strong fundamentals
- Market sentiment is at โExtreme Fear,โ signaling a possible turnaroun
After a rocky start to 2025, many investors are wondering: is this the bottom, or just another dip? With altcoin market capitalization falling over 40% from its all-time highs and dipping below $1 trillion, it may look like doom and gloom on the surface. But for seasoned analysts, this could be the exact moment to buy altcoins before the next big wave.
Altcoin Season Index vs Bitcoin. Source: Alphractal – Techtoken
Bitcoin’s market dominance (BTC.D) is holding steady above 60%. And some believe that when it crosses 70%, it will mark Bitcoinโs local peakโfreeing up capital to flow back into altcoins.
Joao Wedson, founder of Alphractal, thinks this might be the prime setup for an altcoin season. In a post on X, he said many altcoins have dropped back to their launch prices. Coins that once seemed unstoppable have come full circle, opening the door for accumulation.
Altcoins are still in accumulation, and when BTC stumbles, get ready for a new Altcoin Season!
Since December 2024, weโve been in a bear market (actually, the sentiment was already bearish since October). But I still believe that between April and May, the market will heat upโฆ https://t.co/XE26m6MZOl pic.twitter.com/obbbdfKHee
โ Joao Wedson (@joao_wedson) April 2, 2025
Wedson recommends buying altcoins with strong fundamentals, not just trending tokens. He specifically advises avoiding coins that surged in 2024, like Ethereum (ETH), Solana (SOL), and TRON (TRX), as they may already be overextended.
His strategy is clear: accumulate low, stay patient, and wait for the cycle to flip.
You can read more about Ethereumโs 2025 roadmap and whether Pectra could ignite a new bull run.
Bitcoin Dominance Monthly Chart. Source: Ash Crypto – Techtoken
Bitcoin Dominance Nearing Critical Level
Another respected voice, Ash Crypto, believes the key signal is Bitcoinโs dominance crossing 70%. Historically, this marks the end of Bitcoin’s solo rally and the beginning of a massive altcoin wave.
The concept is simple: Bitcoin dominance (BTC.D) measures Bitcoinโs share of the total crypto market cap. When BTC.D rises, it means Bitcoin is outperforming. When it starts to fall, it signals investors are shifting their money into altcoins. Right now, BTC.D is just above 60%โand creeping higher.
Backing up these views is another well-known trader, Merlijn, who posted that the altcoin setup today looks strikingly similar to the early stages of the 2021 rally.
You donโt want to miss this.
Altcoin season is setting up โ just like in 2021.
Last time we saw this chart setup?
Alts did 5โ10x across the board.The next 3โ6 months could define your portfolio. pic.twitter.com/UhbbvBpSKi
โ Merlijn The Trader (@MerlijnTrader) March 31, 2025
But itโs not all sunshine. The Crypto Fear & Greed Index is sitting at 25โclearly in Extreme Fear territory. Many investors are rattled by global tensions and economic uncertainty. But historically, this kind of sentiment has often marked market bottoms.
Some of this fear can be tied to broader crypto market shakeups. Earlier this year, Bitcoinโs Q1 crash raised concerns across the boardโbut also triggered large whale accumulation. Similarly, political moves such as Trumpโs pro-Bitcoin mining stance and Californiaโs Bitcoin rights bill are reshaping the legal and operational landscape.
How to Prepare for a Possible Altcoin Season
Whether youโre a long-term holder or a new investor, preparing for an altcoin season means more than just buying random tokens. Itโs about building a smart, diversified portfolio.
Analysts are advising a focus on projects with:
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Real use cases
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Strong development teams
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Clear roadmaps
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Good tokenomics
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Active communities
Avoid coins driven purely by hype or recent pumps. Instead, consider altcoins that have retraced heavily but show potential for long-term recovery.
For instance, understanding Bitcoin and Ethereum options data can help you spot trends in institutional behaviorโespecially important during volatile times like these.
Also, stay updated with the broader macroeconomic and regulatory signals. Events like Bitcoinโs dominance shift, market fear indicators, and political changes could all contribute to a perfect setup for altcoins to shine.
Many experts agree: Q2 2025 could define the year for crypto investors. While no one can predict the market with certainty, those who buy altcoins during fear, and not hype, often come out ahead.