The landscape of the cryptocurrency world is currently experiencing significant fluctuations, with Bitcoin hovering around pivotal price points and various altcoins displaying mixed signals. However, beneath this volatility lies a fascinating development in the altcoin arena.
According to recent insights from crypto expert CoinVision, the total market capitalization of altcoins—excluding Bitcoin—has achieved its highest monthly close on record. This achievement may spark a conversation about the onset of a potential altcoin season.
Shifts in Market Dynamics
Despite numerous cryptocurrencies wrapping up August below their previous monthly highs, a closer examination of the altcoin market capitalization reveals a significant milestone in terms of its performance.
Notably, crypto analyst CoinVision highlighted long-term trends in the altcoin market through monthly charts, which indicate historical cycle formations. Following previous peaks in 2018 and 2021, the market has reached a key breakout point now marked with series of higher lows.
The latest monthly close signals a breakout beyond the cycle top of 2021, with the altcoin market’s valuation now approximately at $1.6 trillion. This record close, along with several bullish divergence indicators, suggests a strong possibility of an upward trajectory, reminiscent of previous cycles that initiated substantial growth after crossing above historical highs.
One compelling indicator is the MACD, which has recently crossed into bullish territory within the monthly timeframe. CoinVision notes that such indicators are often precursors to major price movements. Additionally, the RSI is positioned comfortably above the midpoint, signifying plenty of room for growth before reaching an overbought state.
Implications for Upcoming Altcoin Trends
Currently, the altcoin market is on the verge of entering a bullish phase that could shape the remainder of the year. Historical data indicate that many altcoins tend to experience their peak performance from October through December. The preceding chart illustrates how the altcoin market capitalization soared above its 2018 mark in late 2020.
If past trends are any indication, this recent breakout could be the catalyst for one of the most significant altcoin rallies. Reflecting on the historical trends of 2020 and 2021, the altcoin sector could see numerous bullish candles throughout the latter months of 2025 and into early 2026. This situation could pave the way for an all-encompassing altcoin season, contingent on the performance of major players like Ethereum and Ripple as we progress through the year.
