According to Cas Abbé on Twitter, the start of an altseason in 2025 requires three critical elements: surplus liquidity, retail investor participation, and a favorable macroeconomic environment. Surplus liquidity occurs when the Federal Reserve injects liquidity and cuts interest rates, which supports risk-on assets such as altcoins (source: Cas Abbé, Twitter, June 2, 2025). Traders should monitor Fed policy decisions closely as they directly impact crypto market sentiment and capital flows. Additionally, increased retail presence typically signals heightened speculative activity and potential for rapid altcoin gains, making these indicators essential for timing altcoin trades.

According to Milk Road (@MilkRoadDaily), Bitcoin (BTC) has reached new all-time highs, but on-chain data shows that small wallet activity in the $0–$10K range remains subdued. This signals that the current rally is primarily fueled by whales and institutional investors, not retail traders. Historically, retail participation often lags behind, but when small investors enter the market, Bitcoin price movements can accelerate sharply. Active traders should closely monitor wallet activity metrics for early signals of a broader momentum shift that could impact altcoin volatility and overall crypto market sentiment. (Source: @MilkRoadDaily, May 28, 2025)

According to Milk Road (@MilkRoadDaily), the number of Bitcoin shrimp addresses—wallets holding less than 1 BTC—has sharply declined, dropping from 558,000 at the 2021 peak to 260,000 today, marking a four-year low. This data suggests a significant reduction in small holder participation or possible consolidation among retail investors, which may impact Bitcoin’s liquidity profile and short-term volatility. Such a trend can signal shifting investor demographics and could influence entry strategies for traders tracking retail accumulation cycles and on-chain activity. Source: Milk Road on X, May 22, 2025.