Bitcoin nearing new all-time high? Ethereum brings altcoin rally!

Bitcoin nearing new all-time high? Ethereum brings altcoin rally!

The crypto market is currently showing a period of stability, holding the gains of the last few weeks while all eyes are on a possible altcoin season. Bitcoin is currently trading just under 5% below its all-time high and analysts expect a dynamic week with important developments for investors and newcomers. This is done by the Wall Street Online reported.

Bitcoin has held up well in recent weeks, which could indicate an impending rise. The analysts, including Ted, show a correlation between the global M2 money supply and the Bitcoin price with a lag of 60 to 90 days. The global money supply is currently increasing sharply, which could drive prices to new heights after a brief consolidation of one to two weeks. An all-time high for Bitcoin of up to $120,000 is considered possible, particularly through a short squeeze.

Ethereum and the Altcoin Season

Ethereum recently shows a significant price increase of over 50%, which has the potential to start an altcoin season. If the Ether price rises above $2,700, many altcoins could experience price increases in the double to triple digit range. This could further reduce Bitcoin dominance, which has currently fallen slightly, thereby increasing the opportunity for smaller cryptocurrencies to also benefit from price gains. Virtune explains that an altcoin season occurs after traders shift profits from Bitcoin into alternative cryptocurrencies.

In the past, a sharp increase in the price of Bitcoin was followed by a period of consolidation, followed by a rise in altcoins. The dynamics of the altcoin season depend heavily on the market situation and investor interest. Bitcoin dominance in particular is an important indicator: when it is high, Bitcoin dominates the market, while when dominance decreases, the opportunities for altcoins increase. A decline in Bitcoin dominance is currently seen as a potential trigger for the start of the altcoin season.

Investment opportunities and challenges

One of the most promising altcoin investments is Solaxy ($SOLX), the first Layer 2 solution for Solana that aims to stabilize the ecosystem. To date, over $37 million has already been invested in the Solaxy token, and during the presale the price will be increased several times, further fueling investment interest. The coming market environment will be crucial to whether Solaxy and other altcoins can continue to gain.

The economic environment of 2025 is challenging, particularly due to quantitative tightening (QT) and high interest rates from central banks. However, a shift in monetary policy measures could have a positive impact on demand for altcoins. If central banks take a more accommodative stance or cut interest rates, liquidity could return, spurring demand for riskier assets.

Investors should closely monitor market conditions, Ethereum performance, and central bank monetary policy developments as these factors will be crucial to how the altcoin season unfolds in the future. Increasing institutional adoption and tokenization of real-world assets could also increase demand for altcoins like Solana and XRP.

Overall, it remains to be seen how the market will develop, but the signals of an impending rise are promising.