In June 2019, altcoin and Bitcoin pairs experienced a capitulation just before the United States Federal Reserve cut interest rates. Fast forward to 2024, and a similar pattern is emerging, leading some analysts to predict a possible final flush out of altcoins before the upcoming Fed rate decision on June 12. The recent fall in crypto and stock markets due to U.S. jobs data may also indicate that the Fed will not be making any rate cuts.
Analysts remain divided on the prospect of an imminent altseason, with some pointing out similarities between the current market cycle and the previous one. Despite the uncertainties, there are still positive outlooks for altcoins. Market participants like MN Trading cofounder Michaël van de Poppe and ‘Mister Crypto’ are expecting bullish breakouts and a potential start to altseason soon. Bitcoin market dominance, currently at 55.2%, is also seen as an indicator of an impending altcoin rally.
However, altcoins continue to remain bearish, with Ethereum, a leading indicator, experiencing a 3.3% drop over the past week. Other altcoins such as Toncoin, Shiba Inu, and Near Protocol have also seen heavier losses. Bitcoin dominance needs to drop below 50% for altseason to truly take off, and this seems unlikely in the near future. If the Fed decides to hold interest rates steady next week, the crypto market, especially altcoins, could face more volatility and downward pressure.
In conclusion, the current market cycle is showing similarities to the previous cycle in June 2019, raising speculation about a potential final flush out of altcoins before the upcoming Fed rate decision. Analysts remain divided on the outlook for altseason, with some predicting a bullish breakout in the near future. Altcoins, including Ethereum, are currently facing bearish pressure, with heavy losses seen in various tokens. Bitcoin dominance remains a key indicator for an impending altcoin rally, but a drop below 50% is needed for significant gains to materialize. The upcoming Fed rate decision may introduce more volatility and pain for the crypto market, particularly for altcoins, before any meaningful gains are realized.
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