The crypto world is abuzz with speculation: Is an altseason on the horizon? Miles O’Connor is a Dublin-based economic analyst, famous for his contrarian independent-thinking views on altcoin economics. What excites Anthony the most is that the charts are signaling a looming altcoin explosion coming in 2025 👀. O’Connor isn’t just aiming with a blindfold on. He brings libertarian principles, technical expertise, and a healthy dose of skepticism together to surgically dissect the market. This isn't your typical, sugar-coated market analysis, it's a raw, unfiltered look at what might be brewing beneath the surface of the crypto ocean.

O'Connor emphasizes that altseasons aren't monolithic events. They can happen several times over the course of a year, sometimes in very narrowly compressed timeframes. Identifying the signs early is key for any smart investor wanting to take advantage of where the biggest returns are set to be found. He cautions that one key ingredient is still missing: Bitcoin needs to stabilize at higher price levels. A wobbly Bitcoin doesn’t make for the rock-hard support we’re looking for an altseason to really get up off the mat.

If a true altseason is really bubbling, O’Connor expects Ethereum (ETH) will be the first to go. This has been the case historically, with Ethereum typically leading the way as a bellwether for the altcoin market at large. The beginning of a real Ethereum price rally is often telegraphed by an increase in Ethereum price and activity. Bitcoin dominance usually falls under 54% during an altcoin season. This charts Bitcoin’s percentage of the entire cryptocurrency market cap. This is a massive signal that investors are moving their money out of Bitcoin and into altcoins, looking to maximize their growth potential.

Decoding the OTHERS/BTC Chart

The OTHERS/BTC chart The most important chart to refer to when gauging if an altseason could be brewing or not. Consider it a bellwether for the performance of the best and brightest (most promising) of all the altcoins outside of Bitcoin and Ethereum, against Bitcoin. A climbing OTHERS/BTC chart indicates that altcoins are leading Bitcoin, one of the most important indicators of an altseason. On the other hand, a descending chart would mean it’s a good time to invest in Bitcoin.

O'Connor stresses that interpreting this chart isn't just about looking at the direction of the line. It's about understanding the context. Is the overall market bullish or bearish? What are the current macroeconomic conditions? Which regulatory developments, if any, are looming large? These aspects collectively play a huge role in dictating how well altcoins will perform and how applicable the OTHERS/BTC chart signal is.

The Liquidity Connection

Altcoin seasons don't happen in a vacuum. Historically, they’ve been deeply correlated with periods of abundant global liquidity. Think of it like this: when there's plenty of money sloshing around in the global financial system, some of it inevitably finds its way into riskier assets like altcoins. For instance, O’Connor points out that crypto is typically 13 weeks behind global liquidity. This suggests that changes in global liquidity can act as a leading indicator for future altcoin price movements.

The rise in global liquidity is currently being driven by two key factors: a weaker U.S. dollar and improved central bank liquidity, particularly from the People's Bank of China (PBoC). A once-weaker dollar makes it easier for international investors to enter, purchasing their cryptocurrencies at a discount. At the same time, growing central bank liquidity further injects new capital into the financial system.

Regulatory Tailwinds

The regulatory climate is helping too. Even the U.S. regulatory landscape, it has long been a major crypto industry headwind, is indicating an easing underway. The SEC has dropped or paused most of its enforcement actions, reducing the uncertainty surrounding the legal status of many cryptocurrencies. Such transparency may be just what institutional investors require to dip their toes into the altcoin market.

Markets are getting more liquidity, regulatory clarity is coming. Those are two plus factors right there. We believe these factors combined can lead to another robust altcoin season in 2025. As O’Connor warns, this may not be the case. We know that market conditions can be fickle and that unexpected developments can knock even the most touted movements off course.

Key Indicators to Watch

O'Connor outlines several key indicators to watch in order to confirm the arrival of an altseason:

  • A drop in Bitcoin dominance to around 50-54%.
  • Ethereum (ETH) moving first, often followed by a surge in altcoins.
  • Over 75% of altcoins outperforming Bitcoin over a set period.

Don’t lose track of the next Pectra post periodic rebase, due on or after May 7, 2025. This upgrade is set to deliver huge improvements to the Ethereum network, which would only serve to supercharge the current altcoin boom.

Beyond XRP: Altcoins to Watch

O’Connor urges investors to broaden their search for the usual suspects. He recommends investing in altcoins that have powerful fundamentals, cutting-edge technology, and a committed development community. Here are three examples:

1. Optimism (OP) – The Leading Optimistic Roll-up on Ethereum

Overview of Optimism

Optimism is another layer-2 scaling solution for Ethereum. It uses a technology known as “Optimistic Rollups.” This technology batches hundreds of transactions together, processes them off-chain, and finally submits them back to the Ethereum mainnet as one single transaction. This has the effect of drastically reducing transaction fees and increasing transaction speeds.

Key Features and Benefits

  • Scalability: Optimism significantly increases Ethereum's transaction throughput.
  • Low Fees: Transactions on Optimism are much cheaper than on the Ethereum mainnet.
  • EVM Equivalence: Optimism is designed to be as compatible as possible with the Ethereum Virtual Machine (EVM), making it easy for developers to migrate their existing Ethereum applications.
  • Decentralization: Optimism is committed to decentralization, ensuring that the network remains censorship-resistant.

2. Arbitrum (ARB) – A Strong Player in Ethereum's Optimistic Landscape

Introduction to Arbitrum

Arbitrum is the second of Ethereum’s leading layer-2 scaling solution, utilizing Optimistic Rollups. It provides many of the same benefits as Optimism, such as improved scalability and reduced transaction costs.

Advantages of Using Arbitrum

  • High Compatibility: Arbitrum is highly compatible with the EVM, making it easy for developers to deploy their existing Ethereum smart contracts.
  • Fraud Proofs: Arbitrum uses fraud proofs to ensure the validity of transactions processed on the layer-2 network.
  • Growing Ecosystem: Arbitrum has a thriving ecosystem of decentralized applications (dApps) and DeFi protocols.

3. Polygon Ecosystem (MATIC) – A Valuable zk-Rollup Solution

Understanding the Polygon Ecosystem

Polygon is a multi-chain, Ethereum-compatible suite of scaling solutions that contains both Optimistic Rollups and zk-Rollups. zk-Rollups utilize zero-knowledge proofs to validate transactions off chain, providing even more scalability and security than Optimistic Rollups.

Unique Selling Points of Polygon

  • Versatility: Polygon offers a variety of scaling solutions, allowing developers to choose the best option for their specific needs.
  • zkEVM: Polygon has developed a zkEVM, a zero-knowledge virtual machine that is compatible with the EVM, making it easier for developers to build zk-Rollup applications.
  • Large Ecosystem: Polygon has a large and active ecosystem of dApps, DeFi protocols, and infrastructure providers.

Conclusion – Summary of Key Insights

The answer, according to Miles O’Connor’s analysis, is yes — because those charts really are signaling an incoming altseason in 2025. Better liquidity conditions and possible regulatory clarity are both trending up. When paired with these attributes, technological advancements within the Ethereum ecosystem could make altcoins poised to experience a perfect storm of growth. Investors must be careful and do their own research before making an investment in any altcoin. Keep a close eye on Bitcoin dominance and Ethereum’s performance. Monitor global liquidity conditions in order to determine the likelihood of an altseason occurring. Keep in mind, deployed cash is subject to crypto market volatility, and historical returns are not predictive of future performance.

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