Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.
The US Federal Reserve’s decision to ease interest rates by 50 basis points has pushed investors to take on risk assets, raising anticipations of an altcoin season.
To Mason Jappa, CEO and founder of U.S.-based Bitcoin miner Blockware, the medium to long-term outlook for cryptocurrency remains bullish, as lower interest rates tend to support risk-on assets like Bitcoin.
Speaking to Cryptonews, he noted that “if Powell comes out with extremely dovish rhetoric, crypto will likely see a brief pump,” something which unfolded, reflected by overwhelming market optimism and a shift towards risk-on assets.
Altcoins saw significant benefits from this, with significant inflows as new hands entered the market, pushing its market cap up $22 billion over the past 24 hours, according to Coingecko data.
This turn of events echoes pseudonymous analyst Mustache’s comments that traders are “not bullish enough” on altcoins. Mustache cited historical patterns as the basis for an impending altcoin season that will extend into 2025.
#Altcoins
We're all not bullish enough.
Cycles repeat themselves.
2017-2021-2024/2025. pic.twitter.com/puQzHFYxrt
Despite the recent uptick in altcoin trading, on-chain metrics suggest that altcoins still have room to grow before a clear altcoin season sets in.
According to Coincodex data, Bitcoin’s dominance has only been minorly affected. It has declined 0.6% since the Fed rate decision. While this represents a shift towards altcoins, Bitcoin still maintains an overwhelming presence.
Blockchaincenter.net’s Altcoin Season index chart
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