Altcoin Euphoria Phase Set To Start in 2025
The altcoin total market capitalization needs to rise by approximately 16% from its current level before the much-anticipated euphoric altcoin season begins, according to a crypto trader.
Until then, volatility is expected to persist.
In a Dec. 28 X post, pseudonymous trader Daan Crypto Trades predicted that the “euphoria” or “mania” phase would commence once TOTAL3—the total market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum—surpasses its 2021 all-time high of $1.13 trillion and enters price discovery.
At the time of publication, TradingView data shows TOTAL3 stands at $962.78 billion, reflecting a 91.45% increase since the start of the year. Daan noted:
“As long as this trades between ~$840B and ~$1.1T, I think it will be choppy.”
He also expressed caution about the market’s outlook, stating he would be “a bit more cautious” if TOTAL3 dropped below $800 billion.
Some market analysts suggest that increased market volatility stems from traders shifting toward shorter-term strategies compared to previous years.
Syncracy Capital co-founder Daniel Cheung remarked in a Dec. 28 X post:
“Everyone decided they were George Soros all of a sudden this cycle and constantly monitoring hourly charts to time entries/exits and playing with leverage.”
Cheung attributed this shift in trading behavior to the slower pace of crypto token breakouts compared to prior cycles.
Data from CoinMarketCap highlights notable performances among altcoins over the past week.
The top three gainers within the top 100 cryptocurrencies are Bitget Token (BGB), up by 80.65%, Virtuals Protocol (VIRTUAL), which rose by 42.30%, and Pudgy Penguins (PENGU), with a 31.63% increase.
As Bitcoin dominance approaches 60%, coupled with its price stalling in the final days of 2024, traders increasingly believe that shifting focus to altcoins could offer better opportunities.
Pseudonymous trader Dyme emphasized this perspective in a Dec. 27 X post:
“Altcoins, at this juncture, offer a far more optimal R/R [Risk Reward] profile than Bitcoin does,” he said, adding:
“Time to DCA Bitcoin is over for another 1.5+ years.”
Sources:
https://cointelegraph.com/news/altcoin-crypto-market-euphoria-phase-begins-trader
https://x.com/daancrypto/status/1873123339964678282?s=46
https://www.tradingview.com/symbols/TOTAL3/
https://x.com/HighCoinviction/status/1873105245250924763
https://x.com/cryptoparadyme/status/1872378225915273665?s=46
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