The Rotation Begins: Why Altseason Might Be Real This Time

Is it happening again?

Bitcoin has hit new all-time highs. Altcoins, for now, lag behind. But beneath the surface, something is shifting. Ethereum is showing signs of life. Meme coins are waking up. And capital appears to be moving—quietly, but deliberately—down the risk curve.

In this edition of our new monthly crypto fundamentals series, Michael Nadeau of the DeFi Report joins Bankless to examine the case for a developing “altseason.” But unlike the frenzied rotations of 2017 or the DeFi-driven pumps of 2021, this one might be different. This time, the fundamentals actually matter.

Animal Spirits or Real Value?

Let’s start with the obvious: it’s been Bitcoin’s world for the past year. The approval of spot ETFs, institutional adoption, and growing macro uncertainty made Bitcoin the safe bet. And for good reason—it delivered.

But if you’re sitting on the sidelines with ETH or alts, you might feel like the crying Vince McMahon meme: watching Bitcoin fly while your portfolio stays grounded. According to Nadeau, you’re not alone—and that feeling may be a signal, not just sentiment.

He argues that we’re approaching an inflection point. Bitcoin dominance has peaked in past cycles before capital rotated into ETH, then broader altcoins. And while no one can say with certainty that it’s happening again, the on-chain data is beginning to rhyme.

What the Data Says

Several early indicators suggest momentum is building for a shift. First, Bitcoin just completed a “golden cross” on its 50-day and 200-day moving averages, signaling strong upward momentum. But historically, these events often precede alt rallies, not just continued Bitcoin dominance.

Second, the ETH/BTC ratio—while still well below previous highs—is showing upward pressure. If ETH returns to 0.08 BTC (as it did in the last cycle), that could imply a dramatic repricing of Ethereum and a broader risk-on move across the ecosystem.

Third, long-term holders of Bitcoin are beginning to take profits. Glassnode data shows early signs of coins moving from long-term wallets to newer hands. Historically, these rotations coincide with the emergence of altseason as wealth disperses and risk appetite increases.

Finally, there's the fundamentals themselves. Ethereum is generating real protocol fees. Solana's MEV infrastructure (via Jito) is creating measurable value for tokenholders. And a handful of altcoins are starting to exhibit what Nadeau calls “investable KPIs.”

This Isn’t 2021

The biggest mistake investors could make, says Nadeau, is assuming this altseason will look like the last.

In 2021, everything went up. You could throw a dart at CoinGecko and triple your money. But that era was fueled by stimulus checks, unbridled speculation, and a lack of discernment. This time, the market is more mature. The players are smarter. And the capital—while still speculative—is flowing with a bit more discipline.

This cycle may reward fundamentals as much as narratives.

And the macro backdrop supports it. Fiscal policy is trending expansionary. Treasury issuance is climbing. A stablecoin bill with bipartisan support (the GENIUS Act) is moving through Congress. These aren’t just bullish headlines—they represent real, structural drivers of liquidity and on-chain activity.

So... What Do You Buy?

This is where the episode earns its name: copy trade. Nadeau doesn’t just talk theory. He opens his portfolio.

He remains long-term bullish on BTC and ETH but is rebalancing toward Ethereum and adding selective exposure to what he calls “high beta altcoin plays.” That includes Solana meme coin Bonk, Ethereum’s cultural beta in Pepe, and even Worldcoin—a controversial but increasingly performant asset with growing L2 metrics.

He’s not throwing darts. He’s identifying signals.

Some of those signals include Layer 1s with real revenue, ecosystems with sustainable MEV flows, and tokens where low float supply can create outsized upside during brief windows of market risk-on behavior.

Importantly, Nadeau doesn’t claim these are “forever holds.” He distinguishes between long-term conviction assets and short-term tactical plays. That nuance—absent in many crypto influencers—comes from deep research and historical pattern recognition.

What’s Next?

If you’re reading this hoping for a guaranteed call, you’re in the wrong market. Crypto doesn’t offer certainty. What it does offer—uniquely so—is transparency. The data is out there. You just need to look at it.

This new monthly series with Michael Nadeau is an attempt to do exactly that. To bring rigor, structure, and sanity to a market that too often rewards chaos.

So: is altseason back?

No one knows for sure. But if it is, this time it won’t be because of hype. It’ll be because someone followed the fundamentals.

And acted when the rotation signal flashed.