Key Highlights
- Experts warn altcoin rotation cycle may be cooling after Ethereum’s rally
- Bitcoin momentum remains weak, raising concerns of a broader slowdown
- CryptoQuant highlights key signs that altcoin season could be ending
Altcoin Cycle Shows Signs of Cooling
Analysts at the CryptoQuant platform believe the altcoin rotation cycle is gradually coming to an end. They observed that after Ethereum’s brief rally, traders shifted toward other digital assets, but overall activity across altcoins has started to fade.
Experts noted that early signs of slowdown appeared after Ethereum’s trading volumes peaked. On-chain withdrawals of ETH from exchanges also suggested traders were becoming cautious, treating rallies as short-term exits rather than long-term accumulation.
"Back in June, during the so-called ‘double-peak’ phase, one of the main reasons a major correction was considered unlikely was the lack of significant changes in this data," CryptoQuant experts explained. "Now, the picture looks different as activity has softened."
Bitcoin Remains Weak as Market Waits
Meanwhile, Bitcoin continues to move in a narrow range. Despite speculation around possible U.S. interest rate cuts, the market is showing no strong signs of reversal. Analysts suggest Bitcoin’s lack of momentum could further weigh on altcoins, adding to the sense of a cooling cycle.
Bloomberg Intelligence analyst James Seyffarth also recently noted that even the approval of an altcoin-based ETF would not necessarily trigger the start of a new alt season. Instead, experts argue the market may be entering a consolidation phase before its next major move. For investors, this means patience and careful risk management could prove more valuable than chasing short-lived rallies in a slowing market.
