The US Federal Reserve’s decision to ease interest rates by 50 basis points has encouraged investors to move towards risk assets, raising expectations for the altcoin era.
According to Mason Jappa, CEO and founder of US-based Bitcoin miner Blockware, the medium- to long-term outlook for the cryptocurrency continues to increase as low interest rates tend to favor assets that are and Bitcoin-like risk.
Speaking to Cryptonews, he noted that “if Powell comes out with more dodgy rhetoric, crypto will see a short-term tap,” which could develop, indicating greater market optimism and a shift towards the commodity that is and dangerous.
Altcoins have seen huge gains from this, with huge inflows as new hands enter the market, pushing its market cap by $22 billion in the past 24 hours, according to Coingecko.
This turn of events echoes pseudonym analyst Mustache’s comments that traders are “not bullish enough” on altcoins. Mustache cited historical patterns as the basis for the expected altcoin era lasting until 2025.
Has the altcoin era begun?
Despite the recent surge in altcoin trading, on-chain metrics suggest that altcoins still have room to grow before the crash altcoin era begins.
According to Coincodex, the dominance of Bitcoin has only been affected. It is down 0.6% after the Fed’s rate decision. While this represents a shift towards altcoins, Bitcoin still maintains a substantial presence.
Altcoin Season Index chart confirms this, currently at 45, neutral zone.
This is a far cry from the 75 benchmark, which means the altcoin era is in full swing as capital flows from Bitcoin to alts.
Meanwhile, the top 50 altcoins by market cap show notable underperformance relative to Bitcoin.
Over the past 90 days, only a handful of crypto have managed to outperform leading cryptocurrencies, with most still in the red. While the 75% success rate is seen as a hallmark of the altcoins of the era, currently only 50% of altcoins surpass Bitcoin.
The analyst indicates the next two quarters of the Altseason Kick-Off
While the altcoin season may not yet be in full swing, in a September 20 X post, pseudonym analyst Nilesh Rohilla noted a breakout from the descending channel formed by the altcoin market chart . . .
Looking more broadly, the analyst noted that Bitcoin’s crash would be a step towards a “parabolic” crash of altcoins, opening up opportunities for higher profits.
That sentiment was echoed by some analysts who pointed to historical and technical patterns as evidence that the last quarter of this year could be a potential breakthrough for Bitcoin, with six-figure Bitcoin “still at play” as we head towards
This prediction is in line with what is expected to be a major catalyst: the US presidential election, which will bring new all-time highs as “positive momentum prevails regardless of election results.