Amidst a calmer market post-volatility, fundamental signals hint at a major turnaround in 2025. According to Swiss bank Sygnum, altcoins like Ethereum are gearing up for a breakout, global liquidity is on the rise again, and several second-tier cryptos are strategically repositioning. The upcoming altcoin bull run might just kick off in an unexpected place.
Sygnum Bank’s analysis highlights Ethereum’s strategic positioning in the current market. Despite macroeconomic headwinds weighing on the entire crypto sector, ETH is accumulating favorable technical signals. The Swiss bank observes significant volatility compression that typically precedes major price movements in altcoins.
Ethereum’s fundamentals remain solid with growing institutional adoption and the progressive integration of staking into traditional investment products. The network displays sustained on-chain activity, while supply on exchanges continues to decrease. This creates a supply-demand imbalance favorable to buyers.
Sygnum also emphasizes the impact of Ethereum network technical updates and the maturation of its DeFi ecosystem. On-chain metrics indicate progressive accumulation by whales and institutional investors, a pattern historically associated with pre-rally phases. The reduction in circulating supply post-Merge reinforces this bullish thesis.
Crypto markets are currently influenced by restrictive monetary policies and global economic uncertainty. Sygnum acknowledges these headwinds but considers them temporary in its projection for 2025. The correlation between Bitcoin, Ethereum, and traditional markets remains high. This exposes altcoins to fluctuations in stock indices.
Increasing regulation plays an ambivalent role in this dynamic. On one hand, it creates short-term pressure on certain projects. On the other, it establishes a legal framework that reassures institutional investors and facilitates mainstream adoption. Sygnum observes that pro-crypto jurisdictions like Switzerland are becoming attractive innovation hubs.
High interest rates traditionally divert capital from risky assets toward bonds. However, the Swiss institution anticipates a central bank pivot in 2025, which could trigger a liquidity influx into cryptocurrencies. Market sentiment, currently in a fear phase according to the Crypto Fear and Greed Index, historically offers interesting entry points for contrarian investors.
Beyond Ethereum, Sygnum identifies several altcoin segments presenting substantial growth potential. Layer 2 projects, established DeFi protocols, and certain blockchain infrastructure tokens are among the categories to watch. Selectivity remains paramount in a market where the majority of projects won’t survive the next cycle.
Real-world asset tokenization (RWA) is emerging as a major catalyst for 2025. This trend is attracting traditional financial institutions to altcoins specializing in this field. Sygnum, as a regulated bank active in tokenization, possesses unique visibility into these developments.
Investors must nevertheless maintain a rigorous risk management approach. The inherent volatility of altcoins requires prudent allocation and a thorough understanding of underlying projects. Sygnum recommends gradual exposure rather than an all-in positioning, allowing strategy adjustment based on evolving market conditions.
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