- Santiment’s MVRV model shows altcoins in “Opportunity Zones,” hinting at possible rebounds despite global economic uncertainty.
- Historical trends suggest a potential repeat of the 2021 “Altcoin Season,” signaling a possible market rally by March 2025.
- Trade tensions and macroeconomic factors could disrupt recovery, but resolution may fuel rapid growth in the crypto market.
Santiment, a leading on-chain analytics platform, has released findings regarding the altcoin market. According to its MVRV Divergence model, altcoins currently point towards “Opportunity Zones.” These opportunity zones indicate that most altcoins have undergone severe realized losses, which could be enough justification for dip buying strategies by investors.
Though Santiment also warns that the market is under unique global economic pressures. The prevailing trade tensions, particularly between the US and other major economies, bring in an element of uncertainty that could defy normal market behavior.
The MVRV Divergence model tracks market conditions over mid-term timeframes. Based on these indicators, many altcoins have reached levels where buying opportunities could arise. Despite this, Santiment cautions that the global economic climate, especially the escalating “trade war,” introduces volatility. If a resolution emerges, it could trigger a rapid recovery for cryptocurrencies. However, this remains uncertain given the complexity of current global trade dynamics.
Market Cycles: A Historical Perspective
Notable trends have surfaced when compared to previous market cycles. The “Total2 Altcoins,” which covers the period from March 2021 to March 2025, illustrates different stages of the market. In March 2021, altcoins surged during a period identified as “Altcoin Season.” This growth saw the market peak above 40M, signaling dramatic growth. However, since then, the market has experienced a prolonged downturn, marked by lower highs and lower lows.
A similar pattern may emerge in March 2025. The development of a boxed area with increasing momentum suggests that the market may be about to begin another “Altcoin Season,” This implies that cryptocurrency markets may soon undergo a resurgence similar to the one that occurred in 2021.
