TLDR
- Altcoin dominance patterns mirror 2017’s explosive breakout setup, with total altcoin market cap retesting key support at $1.49 trillion
- US inflation dropped below 2% threshold to 1.99%, creating conditions for monetary easing and increased crypto liquidity
- Dollar index (DXY) approaching critical 100 level – failure to break above could signal bullish momentum for crypto markets
- Recent rate cuts and improving regulatory landscape provide institutional foundation for altcoin season momentum
- Bitcoin’s seasonal pattern shows September weakness typically followed by Q4 strength, with high-profile price targets fueling sentiment
The cryptocurrency market stands at a crossroads as Q4 2025 approaches. Market analysts are examining whether altcoin season is ending or just beginning its next phase.
Altcoin dominance charts show patterns that closely mirror the 2017 bull run structure. The dominance metric displays a declining curve followed by what could be an explosive breakout phase. This historical comparison suggests the current market position may be setting up for a major altcoin rally.
The total cryptocurrency market cap excluding Bitcoin recently retested support near $1.49 trillion. This level previously acted as resistance during the May 2021 top and December 2021 peaks. Past resistance zones commonly transform into support levels during market cycles.
Macro Economic Factors Support Crypto Markets
US inflation data shows a drop to 1.99%, falling below the Federal Reserve’s 2% target threshold. This development creates conditions for potential monetary easing policies. Lower inflation typically leads to rate cuts and increased liquidity in financial markets.
The dollar index (DXY) currently trades near the critical 100 level. A strong breakout above this threshold historically pressures Bitcoin and altcoin prices. However, failure to reclaim and hold above 100 would likely benefit cryptocurrency markets.
Recent Federal Reserve rate cuts represent a shift from the 2021 market environment. Cheaper access to capital may increase liquidity flows into alternative cryptocurrencies. This monetary policy change differs from the restrictive conditions that ended the previous crypto cycle.
Regulatory Environment Shows Improvement
The regulatory landscape has evolved throughout 2025 with more favorable crypto policies. US government agencies have adopted more supportive stances toward digital assets. These regulatory shifts create smoother pathways for institutional investment flows.
The SEC is expected to make decisions on multiple altcoin ETF applications during Q4. Additional ETF approvals would provide institutional investors direct access to altcoin spot markets. This development could increase institutional participation in the altcoin ecosystem.
Institutional voices continue making bullish price predictions for the crypto market. Binance founder CZ has stated Bitcoin could reach $500,000 to $1,000,000 this cycle. Eric Trump has called for Ethereum to reach $8,000 during the current market phase.
Bitcoin’s seasonal patterns show consistent September weakness followed by Q4 strength. This historical trend has repeated across multiple market cycles. September 2025 delivered the expected downturn, potentially setting up the seasonal Q4 rally.
Market participants cleared leverage positions during September’s decline. This deleveraging event typically precedes stronger price movements in subsequent months. The recent pullback may have created healthier market conditions for sustained growth.
Total altcoin market cap bounced from the $1.49 trillion support level on August 19th. The same level provided support during Thursday of last week’s trading session. Multiple successful tests of this support zone strengthen its importance as a foundation for future price action.
