Cryptocurrency exchange BloFin has published a study on whether to expect an altcoin season in 2025. The analysts argue that today’s crypto market resembles the dotcom boom on the U.S. stock market.
“Since bitcoin appeared in 2008, only two altcoin seasons can be distinguished: the ICO boom in 2017–2018 and the rise of DeFi in 2020–2021. Low interest rates created an excess of free liquidity, stimulating speculative interest among investors. Similar scenarios were observed during the dotcom bubble of the 1990s. At that time the macroeconomic environment was favorable for risk and investment, as it is now,” noted BloFin analysts.
Analysts believe the current sensitivity to inflation matches the 1990s, so Fed chair Jerome Powell may adopt Alan Greenspan’s strategy: extend the rate-cutting cycle and, if necessary, raise rates moderately to control inflation effectively. That implies a slower pace of liquidity flowing into crypto, though accumulation will continue.
“The crypto industry is in a similar situation to the Nasdaq of that time. We observe similar signs in terms of liquidity. Although rates remain high, the amount of monetary liquidity in the crypto market had been gradually increasing until the latest round of rate cuts. After this cycle began, its growth accelerated, creating a foundation for a possible altcoin season,” the BloFin experts stressed.
BloFin is a cryptocurrency exchange supporting spot and futures trading. The platform’s products include a copy-trading service and tools for passive income.
Earlier, BloFin summed up 2024. Highlights included partnerships with Fireblocks and Chainalysis, the launch of the Heart & Hope Network charity initiative, and the first War of Whales (WOW) trading competition.