Why is the altseason delayed in the current growth cycle

The current bull cycle is creating quite a few puzzles for traders and investors in altcoins. The altseason, which traditionally brings explosive growth to secondary crypto assets, is taking longer than usual to arrive this time. Analyst Ash Crypto recently shared an in-depth explanation of why the altseason keeps getting delayed and when to expect it.

Altseason hits a wall at ETH

Since the start of Bitcoin’s bull run last year, only a few altcoins have managed to reach new all-time highs alongside the main cryptocurrency. Successful projects included ONDO, FET, and SUI, which hit their ATHs early in the cycle. Later, SOL and BNB joined in, also setting new records.

However, the key moment only comes when Ethereum—the flagship of altcoins—begins to rise. The market waited for ETH to recover to its previous ATH of around $4,800, then broke through to a historic high of about $4,900 in Q3. Today, Ethereum’s current price is $2.16K, significantly below its all-time high of $4.95K.

Analysts agree: a full altseason won’t start until Ethereum breaks and holds above the psychological level of $5,000. This acts as a confidence trigger for the entire altcoin market.

Liquidity flows into safe assets

The paradox of this cycle is that, despite huge liquidity in the market, large capital is concentrated only in low-risk assets. Bitcoin has grown 8.5 times from its November 2022 low of $15,400 to a record high of $126.08K, US stocks have reached record levels, and gold has added trillions to its market cap.

However, this liquidity isn’t flowing into altcoins. Instead, investors are focusing their bets on absolutely safe assets—gold, bonds, and top-7 stocks. The current Bitcoin price of $73.67K shows that even the leading cryptocurrency has pulled back from its highs. Meanwhile, altcoins are hitting new lows every week.

The reason lies in uncertainty caused by trade wars and tariffs. Investors prefer to play it safe rather than risk volatile altcoins.

When will confidence in altcoins return?

History shows a clear pattern: in 2017 and 2021, bull markets developed along a similar scenario. First, safe assets gained momentum, creating initial confidence. Then capital gradually flowed first into Bitcoin, then into Ethereum, and eventually into large-cap altcoins and finally small-cap projects.

However, the current cycle is stuck at the first stage. Fortunately, the horizon is beginning to clear. With three expected interest rate cuts in 2025, the end of quantitative tightening (QT), and a shift toward easing monetary policy, markets should see a return of capital to risky assets.

Once Ethereum surpasses the $5,000 mark, the altseason will finally get the green light. The return of liquidity to risky assets will trigger a chain reaction: Bitcoin will hit new highs, ETH will follow, and confidence will be restored in altcoins. It’s only a matter of time, not possibility.