Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Outset PR CEO Mike Ermolaev predicts a powerful altcoin cycle ahead, driven by Bitcoin liquidity flows and strategic communication around real-world utility.
In today’s crypto market, Bitcoin’s (BTC) dominance stands at nearly 61%, continuing its steady upward trend since early February, when it was at 58%. This gradual increase suggests that BTC is consolidating its position as the market leader, absorbing capital and potentially setting the stage for an altcoin supercycle. Despite the Altcoin Season Index currently sitting at 47, down from 88 in December 2024, several market indicators hint at the possibility of a broader altcoin rally in the near future.
Historically, Bitcoin’s dominance has reached 71% before an altcoin season begins. As liquidity flows into BTC, the next logical step for investors is to diversify into high-beta altcoins. This shift is already happening, as evidenced by the growing interest in high-utility, large-cap tokens like Ethereum (ETH), Solana (SOL), and Ripple (XRP).
The latest report by Cointelegraph states that, during bull cycles, Q1 has generally been a strong quarter for ETH, leading to the expectation that the altcoin season may unfold in the short term. “The altcoin season is expected to continue in Q1, with altcoin market capitalization projected to hit $3 trillion due to an anticipated inflow of funds into the crypto industry.”
Moreover, in the previous market cycles of 2017 and 2021, altcoin seasons followed a pattern where large-cap altcoins surged first, then the capital flowed into mid- and low-cap altcoins. This trend is why the recent price spikes of SOL and XRP are noteworthy.
From a low of $185 on January 13, Solana soared more than 60%, surpassing $290 and setting a new all-time high of $294.33 on January 19. Meanwhile, XRP jumped from $0.51 in November 2024 to $3.38 on January 16, marking a 563% increase.
Although market corrections have since pushed prices down, both tokens, along with Ethereum, Dogecoin (DOGE), Binance Coin (BNB), Cardano (ADA), and Sui (SUI), remain predominantly in long positions. Data from Coinglass suggests growing market confidence in these altcoins and an increasing willingness to bet on further upward price movement.
On the macro-political front, a crypto-friendly U.S. administration has further bolstered this optimism. On February 4, Eric Trump, son of the sitting president, recommended buying ETH on his X (formerly Twitter) account. High-profile endorsements like this often sway public sentiment and attract more attention to the altcoin market.
Likewise, prominent trader TRACER (with nearly 300,000 followers on X) recently predicted that altcoins “will go parabolic” this month, fuelling the excitement within trading circles.
Renowned crypto expert Michaël van de Poppe weighed in, stating, “Long on altcoins, 2025 is going to be a great year.”
Mike Ermolaev, the crypto.news contributor, advisor to the 2024 crypto.news awards and founder of Outset PR, also shared his perspective on whether we’re entering an altcoin season.
“As liquidity flows into Bitcoin with increasing institutional adoption and discussions about it as a strategic reserve gaining momentum, the stage could be set for a powerful altcoin cycle. Historically, once Bitcoin absorbs capital, altcoins follow – this time, the momentum could be even stronger with rising mainstream interest.”
Earlier, in an interview with BeInCrypto, Ermolaev emphasized that while more institutions are entering the crypto space, the market itself has not yet fully matured, making narratives and media coverage the key drivers of investor interest in cryptocurrencies. Expanding on this, he explained that this dynamic creates a self-reinforcing cycle: as the prospect of an altcoin season draws closer, sensational headlines begin to dominate, contributing to a FOMO (fear of missing out) effect.
Ermolaev cautioned that many projects intentionally exploit FOMO to attract investors with exaggerated promises during market upswings.
“But this strategy is highly situational because boom-and-bust cycles are intrinsic to the industry. The projects that survive long-term are those that prioritize real-world utility over speculation and build their communication strategies around stability and long-term value, rather than hype,” he added.
Drawing from his experience collaborating with the Choise.ai project, Ermolaev cited its native CHO token as a vivid example of how altcoins can succeed when their underlying products not only demonstrate but clearly communicate their value.
“Choise.ai is a large ecosystem of crypto solutions for businesses. CHO is the centerpiece of this ecosystem, integrated across all of its products, creating high market demand for the token. To attract new investors and retain current holders – which is the ultimate goal of token PR – it’s important to communicate how these products solve real-world problems. CHO, despite being a low-cap token, managed to weather the last crypto winter, even gaining value while Bitcoin and other major cryptocurrencies declined. This was possible because the project not only demonstrated tangible, practical value but also strategically highlighted it through PR.”
As the crypto industry moves closer to what analysts predict could be the next altcoin season, Ermolaev underscores the importance of communication strategies that emphasize actual product utility. By leveraging targeted media outreach and strategic newsbreaks, projects can gain market traction and make the most of altcoin season opportunities. This principle is exemplified by CHO’s 28.5x increase during Choise.ai’s business transformation, which aligned with a bullish market in Q1 2024 and was supported by Ermolaev’s Outset PR agency.
As we move further into 2025, whether altseason truly takes off will depend on a combination of macro trends, liquidity flows, and investor sentiment, all of which remain dynamic factors in the crypto industry. Currently, the altcoin market shows mixed performance. While most of the leading cryptocurrencies are trading in the green, tokens like Binance Coin, TRON (TRX), and Bitget Token (BGB) face losses. Notably, BNB has declined by nearly 5% in the last 24 hours, affected by the rumors about Binance selling a significant portion of its BTC and ETH reserves.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
