TL;DR:
- Analysts believe stablecoin accumulation now could precede a major altcoin rebound, signaling that altseason may be loading.
- TOTAL3 metric and lower Bitcoin dominance point to potential capital rotation from Bitcoin to undervalued altcoins.
- Early signs of recovery in some alts and investor optimism suggest the bear phase might be ending and a new altcycle could be underway.
After a devastating November that saw many altcoins crushed and over a trillion dollars depart the crypto market, some analysts remain optimistic about what lies ahead. Market watchers argue that a rotation of capital into stablecoins is setting the stage for a delayed but powerful altseason. The dramatic losses have shaken confidence, yet this withdrawal may be temporary as investors prepare for reentry under more favorable conditions.
Why altcoins feel dead but money is actually rotating:
TOTAL3 without stables / BTC: No breakout. Still looks bearish.
TOTAL3 with stables / BTC: Broke out. Money flowing.
The difference? Capital is sitting in stablecoins.
Bitcoin dumps → Money to stables → Stables… pic.twitter.com/YAhT4omCxy
— Stockmoney Lizards (@StockmoneyL) November 26, 2025
Market signals hint that altcoins may be gearing up for a comeback
The shift toward stablecoins has been interpreted by some as a normalization phase rather than a retreat. This accumulation of stablecoins, they say, acts as dry powder ready to funnel into altcoins when conditions improve. With Bitcoin’s dominance weakening and stablecoin balances rising, the total market cap excluding Bitcoin and stablecoins—often called TOTAL3—has become a key metric for potential rotation. Analysts tracking this metric suggest we could be close to a turning point.
Despite the sharp drop many altcoins suffered—some losing 50 % or more — a few large-cap alts and select tokens are showing tentative signs of recovery as Bitcoin rebounds to around $91,000 and Ethereum revisits $3,000. These recoveries, though modest, offer glimmers of renewed confidence in altcoins’ potential upside. The partial rebound demonstrates that interest remains, even after steep declines, and some investors are betting on undervalued assets that could lead a broader resurgence.
This is the best visual representation of this cycle.
It's not the end of the bull market.
It's the end of the bear market for #Altcoins.
I keep saying that those current opportunities are massive financial opportunities that will only be granted one time in your lifetime.… pic.twitter.com/1YM4gW5sqQ
— Michaël van de Poppe (@CryptoMichNL) November 26, 2025
Historically, altcoin rallies have followed periods of capital rotation and depressed valuations, particularly when Bitcoin dominance declines. Several analysts contend that the current cycle isn’t over — rather, the bear phase for altcoins might be ending. They argue that the traditional four-year crypto cycle no longer strictly applies and that this moment could mark the start of a broader multi-year altcoin opportunity.
That said, the outlook is far from guaranteed; liquidity, market sentiment, and macroeconomic conditions remain fragile. But for now, the combination of stablecoin accumulation, selective price recoveries, and investor optimism suggests that altseason may be quietly loading, even if few are ready to publicly declare it. If the pattern holds, the next few weeks or months could unearth one of the most significant altcoin rallies in recent years.
