Altcoin Rally Achievable in Q4 2025 Despite Headwinds, Says Sygnum

TLDR

• Sygnum Bank reports that an altcoin rally remains possible in 2025 despite current macro pressure on digital assets.
• Ethereum and Solana surged two weeks ago while Bitcoin dominance fell 12 percent during the anticipated rotation.
• Trump’s tariff war announcement reversed market momentum and pressured overleveraged altcoin positions across the sector.
• Bitcoin reached an all-time high of $ 69,044 on November 10 before long-term holders began selling their positions.
• Treasury demand for altcoins continues growing and could provide fuel for a potential rally in the coming months.

Sygnum Bank’s fourth-quarter outlook suggests altcoins face macro pressure but an altcoin rally remains achievable. Ethereum appears well-positioned for potential gains in the final quarter. However, recent market turbulence has tested investor confidence across digital assets.

Bitcoin Dominance Shifts as Altcoins Face Headwinds

Traders anticipated an altcoin rally just two weeks ago as market conditions appeared favorable. Ethereum and Solana surged while Bitcoin dominance dropped by 12 percent during this period. This movement indicated a rotation from Bitcoin into alternative cryptocurrencies.

Trump’s tariff war announcement reversed this momentum and put pressure on overleveraged positions. The Federal Reserve’s rate cut announcement disappointed markets and dashed hopes for a strong season. According to Sygnum, patterns from past crypto cycles suggest that markets may be approaching the cycle’s top.

Bitcoin reached an all-time high of $ 69,044 on November 10 before long-term holders sold. The “Uptober” rally’s absence disappointed many participants in the crypto space. Nevertheless, fundamental conditions remain strong despite recent price weakness.

Market Fundamentals Support Future Altcoin Rally Potential

Treasury demand for altcoins continues growing and could fuel an altcoin rally ahead. Liquidity levels remain high while institutional adoption increases across the cryptocurrency sector. Regulatory improvements also continue to develop in favor of digital assets.

The government shutdown temporarily delayed crypto-friendly legislation and ETF approvals. More than 150 crypto ETF applications await approval from regulatory authorities. BlackRock and Fidelity are among the major institutions seeking approval for their products.

Approvals could trigger positive sentiment and support an altcoin rally once they begin. Market participants anticipate that regulatory decisions will move in a favorable direction. This development could restore confidence among investors in alternative cryptocurrencies.

Ethereum Positioned for Q4 Gains

Ethereum demonstrates strong fundamentals, with corporate reserves reaching $ 24 billion. These reserves have increased 15 times compared to previous levels. Consequently, 40 percent of the Ethereum supply remains locked out of circulation.

This supply constraint creates upward pressure on demand for the asset. Ethereum’s positioning makes it a candidate for gains during any altcoin rally. Sygnum Bank identifies Ethereum as well-positioned to rise in the fourth quarter.

The bank’s report emphasizes that time remains for an altcoin rally before the end of the year. Market conditions could shift rapidly as regulatory clarity improves. Both Ethereum and other altcoins may benefit from these changing conditions.

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