The cycle of altcoins is bound to come, unless Ethereum can never break through the upward trend. Because Ethereum itself represents the ecology of altcoins.
As the price of Bitcoin and market funds continue to rise, these funds will eventually flow to other currencies, thereby stimulating stronger FOMO sentiment to attract global retail investors.
Looking forward to the altcoin market in 2025, we must not only rely on the launch of altcoin ETFs, but also pay attention to the intensity of interest rate cuts.
At present, the trends of Bitcoin and altcoins have become polarized. There is no doubt that Bitcoin will break through new highs, but the performance of altcoins depends on whether funds can overflow from Bitcoin.
It is expected that there is a high possibility of interest rate cuts in the future, especially around March. If the economic data from January to March is strong, the United States may continue to cut interest rates.
If the interest rate cut is delayed, the capital flow in the market may be affected, institutional funds may remain on the sidelines, and retail investors may face greater risks due to capital outflows.