Altcoin season expectations in Q3 2025 were met by relatively underwhelming outcomes.
Only a few cryptocurrencies managed to capitalize and the bearish outcome in the second half of September watered down bearish expectations.
There are just 3 months left before the end of 2025, and altcoin season expectations have been making a comeback.
Furthermore, there were some solid reasons why Q3 might yield an explosive altcoin season.
Every major bull run has historically been characterized by significant rotation. Altcoin season therefore, acts as a major sign that the bull run is in its second half.
Interestingly, this year’s altcoin season has been playing out with eerily similar characteristics that seemed to be mirroring the 2017 bull run.
The Altcoins dominance chart revealed a slight declining curve followed by an explosive breakout in 2017.
The latest market performance highlighted the possibility that altcoin dominance might be about to enter the explosive rally phase of the trend.
Altcoin Season Expectations Align with Key Support Retest
The altcoin’s dominance chart appeared to be in alignment with the latest altcoin market cap. The latter dropped as low as $1.49 trillion on Thursday last week.
This was a historically significant market cap level, which possibly carries a lot of significance.
The total altcoin market cap bounced back from the same level on 19 August. The same level acted as resistance on multiple occasions in the past, including during the May 2021 top and in December 2021.
It is quite common for past resistance zones to switch into support. Losing this key support level could unleash capitulation because it would symbolize that the crypto market was losing grip of the top range.
The support retest therefore underscores a lot of significance, which is why market outcomes around the same zone could dictate Q4 outcomes.
Note that historic expectations may not always play out especially if different market dynamics introduce more uncertainty.
This zone of contention may also attract a lot of market manipulation and possibly high liquidation levels before the market selects a bullish or bearish footing.
A Look at How Crucial Market Narratives Align with Altcoin Season Expectations
Among the biggest narratives supporting bullish altcoin season expectations was the recent rate cut announcement.
This was one of the biggest differences between the current market position and the 2021 market top.
Rate cuts mean the liquidity landscape was expected to improve. Cheaper access to money may pave the way for higher liquidity flows into altcoins.
Another key narrative supporting bullish altcoin season hype was the improving regulatory landscape.
Liquidity flows may face a smoother time ahead now that the U.S government has been leading the crypto embrace.
The pro-crypto regulatory shifts that occurred this year have so far laid the foundation for easier and robust liquidity inflows.
Moreover, liquidity rotation into altcoins has also been attracting institutional participation.
The SEC is expected to make decisions on multiple altcoin ETFs in Q4.
More altcoin ETFs are expected in the coming months, and this means institutional investors will also get to participate in the spot market.
Based on the above data, altcoin season might just be about to gather momentum. However, this does not necessarily mean that the markets will be immune to directional volatility.
Massive pullbacks are expected in the heated stage of the bull run.