According to Pentoshi on Twitter, the 2017-2018 period marked an S-tier altcoin cycle, with traders witnessing rapid 200% gains from simple project updates, highlighting extreme volatility and opportunity for short-term trading strategies (source: @Pentosh1, May 30, 2025). The 2020-2021 cycle, rated A-tier, was fueled by unprecedented fiscal stimulus and Covid-19 lockdowns, during which 40% of all USD in circulation was printed, significantly boosting crypto liquidity and driving another round of major altcoin rallies (source: @Pentosh1, May 30, 2025). For today’s traders, understanding these historic cycles is crucial for timing entries and exits, especially as macroeconomic shifts and monetary policy continue to influence crypto market dynamics.

According to Miles Deutscher, the primary difference between the 2024/25 and 2020/21 altcoin cycles is the shift in trader sentiment. In 2021, traders had a strong belief in the transformative potential of Blockchain, DeFi, and Gaming sectors. However, the current cycle reflects a lack of belief in these technologies, with many viewing them as unsustainable ventures. This change in perception suggests a potential impact on trading dynamics and market volatility as trust in these technologies declines, influencing traders' investment strategies. [Source: Miles Deutscher on Twitter]