TLDR:
- Altseason cycle 3 started in April 2025 with ETH, and BNB setting fresh highs ahead of mid-cap catch-up season.
- Altcoin market cap could surge to $1.5T–$2T if the cycle follows historic 3x–4x gains before Q1 2026.
- The golden cross pattern has returned, historically linked to altcoin rallies in 2017 and 2021 with high returns.
- Fed rate cuts and liquidity injections are seen as major drivers of sustained altcoin momentum into 2026.
Crypto traders are bracing for what many are calling the most explosive altcoin run since 2021. Over the last five months, high-cap coins have already broken their old records, leaving mid- and low-cap tokens primed for a big move.
Market watchers expect this wave to keep building through early 2026 as liquidity flows back into risk assets. The Fed’s rate cuts are stacking the deck in favor of more price action. Attention is now shifting to how far the current cycle can push total altcoin market cap.
Altseason Cycle 3 Pushes Crypto Prices to New Highs
Nilesh Rohilla said Cycle 3 began in April 2025, drawing parallels to the first altseason of 2017.
He explained that ETH, and BNB have already reached all-time highs within months of the cycle starting with SOL, TRX, and XRP expected soon. The move set the stage for mid- and low-cap coins to catch up, possibly triggering a broad market surge in Q4.
🚨“The 3rd ALTSEASON Has Started — Here’s What History Says”🚨
First, there are three phases of every crypto cycle:
– Pre-ALT Season
– 60% Correction
-Post-ALT Season (runs ~1 year, last 3 months give a sharp “banana-shaped” rally)⏰Cycle 1 ALTSEASON (Jan 2017 – Jan 2018):… pic.twitter.com/zOifQmRFhz
— Nilesh Rohilla (@nilesh_rohilla) September 12, 2025
He estimated that altcoin market capitalization could hit $1.5 trillion to $2 trillion before the cycle peaks in April 2026. If the pattern holds, most altcoins may triple or quadruple from their local bottoms before a sharper rally in Q1 2026.
This late-stage run, referred to as the “banana jump,” is when historic multiples often appear.
The data points to a repeating rhythm in crypto cycles. Rohilla said traders focusing on monthly timing have been caught off guard in 2025. He cited examples where expectations of May and August corrections were met with double-digit Ethereum gains instead.
This time, macro conditions are different from previous cycles. The Federal Reserve’s dovish pivot, including rate cuts and liquidity injections, is expected to keep fueling the rally into 2026.
Continuous inflows create a setup where price pressure can build across all major crypto sectors.
Golden Cross Returns, Fueling Altcoin Sentiment
Master of Crypto flagged the reappearance of the altcoin golden cross, a technical signal that has historically preceded major rallies.
He pointed out that the same pattern emerged in 2017 and 2021, leading to parabolic gains for alts. Traders see this as another layer of confirmation that Cycle 3 still has room to run.
#Altcoin golden cross is back
This signal has only appeared a few times in history.
In 2017 and 2021, it started massive altcoin rallies.
⁰Altcoins went up thousands of percent.
⁰Even $100 could grow into $7,000 within months.Now the same golden cross has appeared again,… pic.twitter.com/NmjjmJZVhB
— Master of Crypto (@MasterCryptoHq) September 12, 2025
Golden cross formations often attract fresh capital, as traders treat them as strong momentum signals. This has helped altcoin dominance rise steadily in recent months while Bitcoin consolidates near record levels.
The conditions are aligning for a broad market rotation favoring risk-on assets.
Market participants now view the next six months as crucial for positioning. Rohilla warned that exiting too early could mean missing the most aggressive part of the cycle.
The combination of technical signals, macro liquidity, and historical cycle data is building conviction across the market.
With altcoin market cap already approaching $1.5 trillion, traders are preparing for volatility but also opportunity. Risk management is now a key part of every strategy, as the final stages of altseason often move faster than expected.
