Altcoin bulls may wait longer as Raoul Pal sees cycle peak pushed into 2026

Analysts argue the crypto cycle has stretched from four to five years, with altcoin season likely delayed to around Q2 2026 as ISM and post-QT liquidity finally turn up.
Summary

• Raoul Pal says debt maturity extensions and weak ISM readings have delayed the classic four-year crypto cycle, with liquidity now likely peaking in 2026 instead of 2025.
• Tom Lee and other strategists see the Fed’s end of QT and eventual QE as the real trigger for risk-on flows, echoing prior cycles where alt rallies followed policy pivots by several quarters.
• Ash Crypto notes total altcoin market cap (ex-top 10) is sitting on support, with the Altcoin Season Index around the 30s, implying BTC dominance first, then a delayed alt rotation.

Cryptocurrency market analysts are revising expectations for an altcoin rally, with several prominent traders projecting the event could be delayed until 2026 rather than occurring in the traditional four-year cycle pattern.

Altcoin bulls

Raoul Pal, a macro investor, stated that debt maturity extensions during 2021-2022 have stretched the typical crypto market cycle by approximately one year, creating what he describes as a five-year structure instead of the historical four-year pattern. This extension reduced liquidity during the anticipated rally period, according to Pal’s analysis.

Pal identified the ISM manufacturing index as a key economic indicator for crypto market movements. Historical data shows that when the ISM index rises above 50, rallies in Bitcoin (BTC), Ethereum (ETH), and subsequently altcoins have tended to follow, according to his assessment.

“Our best guess remains well into 2026, probably around Q2. That’s when the liquidity cycle is most likely to peak,” Pal stated, adding that he does not believe the crypto market is entering an extended bear market.

Market strategist Tom Lee has also noted the correlation between ISM index movements above 50 and significant price increases in Bitcoin and Ethereum, supporting projections that major gains may remain ahead for the cryptocurrency sector.

Crypto trader Ash Crypto presented chart analysis showing the cryptocurrency market excluding the top 10 coins sitting at support levels similar to those preceding previous altcoin rallies. The trader noted that major altcoin price movements typically begin after the U.S. Federal Reserve concludes quantitative tightening policies, when liquidity returns to markets and benefits risk assets.

2025 will be the year of alts.

Alts in 2025: pic.twitter.com/SSS07yi5ww

— Ash Crypto (@AshCrypto) December 17, 2025

Ash Crypto’s analysis suggests the current market structure resembles conditions from 2020, which could indicate a potential altcoin rally beginning around 2026 if historical patterns repeat.

The Altcoin Season Index currently stands at 37, indicating the market has not yet entered a period characterized by widespread altcoin outperformance, according to the metric’s methodology.

Altcoins have underperformed Bitcoin for several months, according to market data, prompting questions among cryptocurrency investors about the timing of the next altcoin rally cycle.