TLDR
- Sygnum Bank reports that an altcoin rally is still possible in 2025 despite current macro pressures on digital assets.
- Ethereum and Solana rallied two weeks ago while Bitcoin dominance fell 12 percent during the expected rotation.
- Trump’s tariff war announcement reversed market momentum and pressured overextended altcoin positions across the sector.
- Bitcoin hit an all-time high of $69,044 on November 10 before long-term holders began selling their positions.
- Treasury demand for altcoins continues to grow and could fuel a potential rally in the coming months.
Sygnum Bank’s Q4 outlook suggests altcoins are facing macro pressure but an altcoin rally is still possible. Ethereum appears well positioned for potential gains in the final quarter. However, recent market turmoil has tested investor confidence in digital assets.
Bitcoin Dominance Shifts As Altcoins Face Headwinds
Forex traders anticipated an altcoin rally just two weeks ago when market conditions appeared favorable. Ethereum and Solana increased while Bitcoin dominance fell by 12 percent during this period. This move indicated a rotation away from Bitcoin to alternative cryptocurrencies.
Trump’s announcement of a tariff war reversed this momentum and put pressure on overstretched positions. The Federal Reserve’s rate cut announcement disappointed markets and dashed hopes for a strong season. According to Sygnumpatterns from previous crypto cycles suggest that markets may be nearing the top of the cycle.
Bitcoin hit a record high of $69,044 on November 10 before long-term holders sold. The absence of the “Uptober” rally disappointed many participants in the crypto space. Nevertheless, fundamentals remain strong despite recent weak prices.
Market Fundamentals Support Future Altcoin Rally Potential
Treasury demand for altcoins continues to grow and could fuel an altcoin rally going forward. Liquidity levels remain high while institutional use increases in the cryptocurrency sector. Regulatory improvements also continue to evolve in favor of digital assets.
The government shutdown temporarily delayed crypto-friendly legislation and ETF approvals. More than 150 crypto ETF applications are pending regulatory approval. BlackRock and Fidelity are among the major institutions seeking approval for their products.
Approvals can trigger positive sentiment and support an altcoin rally once they begin. Market participants expect regulatory decisions to move in a favorable direction. This development could restore confidence among investors in alternative cryptocurrencies.
Ethereum Positioned For Q4 Gains
Ethereum shows strong fundamentals, with corporate reserves reaching $24 billion. These reserves have increased 15 times compared to previous levels. Consequently, 40 percent are off Ethereum supply remains excluded from circulation.
This supply constraint creates upward pressure on demand for the asset. Ethereum’s positioning makes it a candidate for gains during any altcoin rally. Sygnum Bank identifies Ethereum as well-positioned to rise in the fourth quarter.
The bank’s report emphasizes that there is still time for an altcoin rally before the end of the year. Market conditions can change quickly as regulation becomes clearer. Both Ethereum and other altcoins can benefit from these changing conditions.
