Time Remains for an Altcoin Rally in 2025, Says Sygnum

Sygnum Bank's outlook for Q4 suggests that although altcoins are facing some challenges, there could still be an opportunity for a rally, particularly for Ethereum, as macroeconomic conditions improve. This report delves into the market dynamics, highlighting factors that may lead to a reversal in trends by the end of 2025.

Key Takeaways

Altcoins face short-term issues but could see a rebound.
Ethereum (ETH) and Solana (SOL) recently demonstrated growth amid a shift from Bitcoin dominance.
Overleveraged positions were pressured by external events, including tensions related to tariffs.
Despite hurdles in legislation and ETF approvals, demand for altcoins remains strong.
Corporate reserves for Ethereum are significantly higher, indicating a potential increase in demand.

Image representing the altcoin rally in 2025, as Sygnum reports

Main Content

Sygnum Bank's latest report for the fourth quarter highlights that while crypto markets are currently under macroeconomic pressure, Ethereum is positioned for a significant rally. Despite the short-term challenges that many altcoins face, there is still a possibility for a turnaround.

Not long ago, traders were optimistic about the onset of altcoin season, seeing Ethereum (ETH) and Solana (SOL) perform well, while Bitcoin's dominance saw a decrease of 12%. These developments indicated a potential rotation towards altcoins. However, recent comments from Donald Trump concerning the tariff war led to a sharp decline in overleveraged altcoin positions.

This negative trend prompted long-term holders of Bitcoin (BTC) to consider selling, especially after Bitcoin reached an all-time high of $126,198 on October 6.

The Potential for an Altcoin Rally

Despite the absence of a traditional "Uptober," Sygnum asserts that the fundamentals of the crypto market remain strong. One key point of optimism is the rising treasury demand for altcoins, which could support their price increases. Furthermore, liquidity levels are high, institutional acceptance of cryptocurrencies is growing, and regulatory frameworks are expected to evolve positively.

Although the recent government shutdown has stalled the progress of crypto-friendly legislation and ETF approvals, there is still widespread anticipation that these processes will favor altcoins in the future. Currently, over 150 crypto ETF approvals are pending, with major companies like BlackRock and Fidelity in the mix. As these approvals begin to be granted, the overall market sentiment might turn more optimistic.

Ethereum, in particular, is in a robust position. The corporate reserves for Ethereum are now 15 times higher at approximately $24 billion. This situation results in around 40% of Ethereum being locked away, creating significant upward pressure on its demand, positioning it as a potential leader in the market rally.