Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin’s recent bullish movement above $65K has sparked FOMO in the altcoin sector as expectations for altseason grow, as noted by 10x Research CEO Markus Thielen.
In a market update from 10x on September 26th, Thielen expressed a positive outlook for altcoins, pointing to Bitcoin’s recent breakthrough past the persistent resistance level of $65,000 as a precursor to the “next wave.”
Thielen stated that Bitcoin’s rise above $65,000 has “ignited” FOMO returning to the altcoin market. “A significant surge could be imminent, generating even more FOMO throughout the crypto landscape,” he remarked.
He anticipates this scenario to develop swiftly, setting a Bitcoin target of $70,000 within the next two weeks, with “all-time highs expected by late October.”
This emphasis on altcoins is highlighted by notable changes in market dynamics. Bitcoin’s dominance has decreased, down 1.57% to 57.51%, according to TradingView data. At the same time, Ethereum gas fees have surged, driven by increased altcoin activity across the ecosystem.
Bitcoin dominance & Ethereum gas fees since Fed rate cut. Source: 10x Research.
Analysts have interpreted this as an indication that Bitcoin’s dominance may be reaching its peak. Investors seem to be selling BTC and reallocating their funds into alternative coins, suggesting that “altcoins are likely the focus for now.”
What’s Driving the ‘Next Wave’ For Altcoins?
Thielen indicated that if the US Federal Reserve “remains open to cutting rates,” high-beta altcoins are likely to gain additional momentum.
His remarks follow the Fed’s decision on September 18th to reduce rates by 50 basis points, a positive sign for riskier assets. Lower interest rates diminish the attractiveness of traditional investments such as bonds and term deposits for investors.
This is supported by the Fed’s dovish dot plot, which revealed that the median Fed policymaker anticipates an additional 150 basis points in rate cuts by the end of 2025.
Related Posts
Meanwhile, retail crypto trading activity in South Korea reinforces this trend, with daily trading volumes now around $2 billion. Shiba Inu has regained the leading position in trading volume in South Korea, indicating “increasing speculation and setting the stage for a potential Q4 rally.”
The recently announced stimulus package from the People’s Bank of China (PBOC) also fosters optimism. Coinciding with the Fed’s rate cuts, it could lead to significant capital outflows from China into the cryptocurrency market.
Thielen speculated that the $278 billion Chinese stimulus initiative could “trigger a parabolic rally in cryptocurrency prices, driven by rising global liquidity.”
In 2013, Chinese exporters utilized over-invoicing to channel billions into Bitcoin, resulting in a substantial rally—a scenario Thielen believes could repeat.
Altseason Isn’t Here Yet, According to Metrics
The analyst concluded his analysis by stating “the likelihood of a Q4 rally is exceptionally high” as catalysts continue to align in favor of the market, particularly for altcoins—something analysts have noted could ignite the “largest” altseason since 2017.
However, it is not yet time for celebration, as the altcoin season index from Blockchain Center indicates that “it is not altcoin season.” This index considers it altcoin season if 75% of the top 50 coins have outperformed Bitcoin over the past 90 days.
This score is steadily rising, though. Currently, 41% of the top 50 coins have outperformed Bitcoin, nearing a recovery of the levels observed immediately after the Fed rate cut, which peaked at 46%.
Altcoin season index. Source: Blockchain Center
Thus, while optimism is high and catalysts are aligning, caution persists as the market awaits a more definitive shift in altcoin performance.
Meanwhile, we remain in an accumulation phase as we approach this pivotal moment. This presents a valuable opportunity for investors to solidify their positions in the most promising altcoins leading into the anticipated altseason.
The post Analysts Caution ‘Next Wave’ as $65K Bitcoin Break Sparks Altseason FOMO appeared first on Cryptonews.
