The Altcoin Season Index is one of the primary tools used to gauge altcoin markets, their mood mode and make investment decisions accordingly.
The index has three zones, Bitcoin Season (0-25), Neutral (25-75) and Altcoin Season (75-100).
Table of Contents
January
In the month of January the alcohol index showed a high of 61 and a low of 41. For the entire month the values didn’t change much and mostly were around 50.
The factors that impacted the Altcoin markets in the month of January were the 2024 US Presidential elections the expectations of a pro crypto regime in USA.
However the liquidity status remained the same for the markets and the interest rates were beginning to take a toll on them. The last week of January saw US Federal Reserve explore the possibility of zero rate cut in 2025 due to high US inflation.
February
By the first week of February Crypto markets saw a huge crash due to 2 major factors:
- The first factor was the crash in memecoin markets which after reaching their height were producing around 50,000 memecoins per day.
- The second factor bringing the markets down where the negative guidance by US Federal Reserve which had predicted a little to zero chance of a rate cut in 2025.
These two factors diminish the hopes of a revival in 2000 and 25 and crash the meme coin index from 61 to 31.
March
March saw the continuation of sell-off in the altcoin markets where the altcoin season index dropped from 31 to 22, with the lowest point being at 18 (on 26 March).
Among all news of a liquidity crisis, the US Federal Reserve gave a slight indication that it could introduce a less hawkish policy for the rest of the year. It also said that there would be quantity easing after 1 April 2025.
April
The month of April saw the altcoin season index dropped from 22 on 1st April to 13 at the end of the month.
By this time the markets head grew a lot more restless and there were enough signs that the markets were oversold.
Amid hawkish guidance of fat since the start of the year the markets hoped for a rate cut of 0.25% in the May 6 to 7 Fed meeting.
May
The month of May so alcohol season index from going from 13 on May 1 to 31 in May 13 and then again crashing to 13 in May 31. The recovery failed to sustain at higher levels because of a fear that the crypto markets might not see a rate cut even in the June 2025 Federal Reserve meeting.
June
June could see (marginal chances) one of the first US Federal Reserve rate cuts of 2025. If a rate cut happens markets could see the revival of alt coin market cap towards $1.5 trillion, otherwise there could be a crash below $1 trillion.
Frequently Asked Questions
Which crypto will be the highest gainer in 2025?
We have an opinion that utility coins could be the highest gainer with Ethereum leading the pack in 2025.
How long does an Altseason last?
An altcoin season generally lasts over a year but it is highly dependent on local factors at that time such as economy, politics, regulations, etc.
Do Altcoins have a Future?
Yes, altcoins do have a bright future because they have much higher utility than Bitcoin which is just a peer to peer crypto. Opposed to this altcoins can support various automated uses cases including AI bots, trading, crypto investing, DeFi, smart contracts and a lot more.
