Top 3 Reasons Why a Crypto Market Breakout Could be Coming Soon

Key Insights:

• Crypto market eyes rally as optimism on GENIUS Act vote surges.
• Altcoin Season Index is climbing again.
• On-chain data shows investors aren’t rushing to sell, which might be a crypto market breakout catalyst.

The crypto market is showing signs that a breakout could be coming. A few important events are lining up. New crypto laws might be passed in the U.S., and more people are looking at Ethereum.

Even altcoins are starting to rise faster than Bitcoin. At the same time, most investors are not selling their crypto yet.

All these things together could be setting the stage for the next big crypto market breakout.

U.S. Lawmakers Push the GENIUS Act – Impact on Crypto Market?

Former President Donald Trump said the GENIUS Act vote will now move ahead. This bill is important because it would set clear rules for stablecoins, digital dollars used in crypto.

Trump said 11 of 12 lawmakers are ready to vote “yes.” That means it has a high chance of passing.

Senators are also discussing two other bills: the CLARITY Act and the Anti-CBDC Act. All of these aim to support crypto and stop overreach from big financial groups.

If passed, it could help bring more trust and big investors into the crypto world.

Ethereum is Showing Renewed Strength

At the same time, institutional interest in Ethereum is heating up. SharpLink Gaming added another 5,188 ETH worth $15.76 million to its treasury, bringing its total holdings to 285,894 ETH (over $870 million).

Separately, another large entity withdrew 80,312 ETH from KuCoin, valued at over $224 million, likely for long-term holding. These moves suggest big players are quietly loading up on ETH while prices remain below all-time highs.

And it’s not just investor interest that’s rising; Ethereum’s actual usage is spiking too. According to data shared by investor @TedPillows, daily transactions on the Ethereum network are nearing 1.5 million, a level last seen during the peak of the 2021 bull run.

This shows that more people are using Ethereum again, either for DeFi, NFTs, or transferring value;  a strong sign that activity is picking up under the hood.

Together, these policy shifts and on-chain trends are setting the stage for a potential crypto market breakout.

Altcoin Season Hints at the Crypto Market Breakout

The Altcoin Season Index, made by CoinMarketCap, is now at 34. This index shows if altcoins (like Solana, Cardano, and others) are doing better than Bitcoin.

When the index is rising, it often means money is flowing into smaller crypto coins. For an overall market breakout, it is important that falling Bitcoin dominance is supported by a rise in altcoin prices.

Right now, the index is not above 75 yet, which would confirm a full altcoin season. But it is moving up, and that’s usually an early sign that a broader crypto market breakout could be coming. And that’s not all.

Glassnode, a crypto data company, shows that most short-term holders are not rushing to take profits. Even though Bitcoin is close to its all-time high, people are holding on.

Although some profit-taking has happened over the past few days, the levels are lower than what usually happens when BTC hits an all-time high. That’s a good sign.

And Ethereum (the top altcoin), as mentioned earlier, is seeing exchange outflows despite being close to the $3,000 mark.

If people are not selling quickly, it means they still believe prices can go higher. When demand stays high and supply is tight, prices usually rise. This shows that the market is not overheated yet.

Right now, we’re seeing a mix of good news for crypto. The GENIUS Act might become law. Inflation is slowing, and the Fed may cut rates.

Ethereum is seeing more activity than it has in years, and altcoins are starting to shine. On top of that, most investors are not selling yet.

All of these points point to one thing: the crypto market may be gearing up for a breakout.