emre yumlu 
AI (artificial intelligence) cryptocurrencies have lost nearly 30% of their value recently, but analysts are forecasting a strong recovery during the 2025 altcoin season.
Despite expectations of an altcoin season supported by crypto-friendly regulations in 2025, AI cryptocurrencies have lost almost a third of their total value.
According to CoinMarketCap data, the total market capitalization of AI cryptocurrencies dropped more than 28% from the peak of $70.4 billion on December 7, falling to $50.5 billion as of 7:15 a.m. UTC.
AI Cryptocurrencies Market Capitalization, 1-Month Chart
The total trading volume for AI tokens has also experienced a decline, falling by about 11% over the past month to the current $4.73 billion. This indicates a decrease in trader interest in AI cryptocurrencies.
The approximately 30% drop in AI-based cryptocurrencies occurred during a broader crypto market downturn.
During this period, Bitcoin’s price also experienced a correction of more than 14% from its all-time high above $108,000 on December 17.
BTC/USD, 1-Month Chart
An increasing number of analysts are forecasting that the altcoin season will begin in 2025. During this period, Bitcoin profits are expected to flow into smaller cryptocurrencies, including AI tokens.
Can Altcoin Season in 2025 Boost AI Cryptos?
Altcoin season typically benefits from a decline in Bitcoin’s market dominance. This means that investors take profits from their BTC positions and invest a portion of these funds into altcoins.
Crypto Market Flow
The 2025 altcoin season may start in the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja in a December 27 post on the X platform.
‘Just a few more weeks before mega altcoin season…’
Total Crypto Market Cap Excluding BTC, 1-Month Chart
In crypto trading, technical traders use price fractal patterns based on historical data to identify key support and resistance levels and potential trend reversals.
Ether’s price could benefit from the altcoin rally and recapture its previous all-time high.
While some analysts forecast Ether rising to $5,000 in the short term, others are predicting an ‘impulse breakout’ to $15,000 by the end of 2025.
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