Sygnum’s Q3 2025 Investment Outlook indicates that a long-anticipated rotation into altcoins may be approaching due to increasing regulatory clarity and capital liquidity. Earlier geopolitical tensions and US fiscal uncertainty triggered a sell-off in the altcoin market, but current trends suggest a shift towards projects with sustainable token models. As regulatory clarity extends to altcoins, capital is likely to flow towards economically viable projects. The report highlights a bullish trend in Bitcoin liquidity, with the cryptocurrency reaching an all-time high of over $123,000. Additionally, Bitcoin Spot ETFs have amassed over USD 160 billion in assets. Ethereum is experiencing a resurgence with falling exchange balances and institutional demand, confirming a break from its long-term downtrend. However, there is caution regarding potential memecoin bubbles as the altcoin market gains momentum, which historically could lead to sharp corrections if left unchecked.

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