Analysts Warn of Next Wave as Bitcoin Surges Past $65K Igniting Altseason FOMO
Bitcoin’s recent surge past $65,000 has sparked excitement in the altcoin market as analysts predict the potential for an upcoming altseason. Markus Thielen, CEO of 10x Research, highlighted in a September 26th market update that Bitcoin’s breakout could be a precursor to a significant rally for altcoins.
Thielen noted that Bitcoin’s move above the resistance level has reignited FOMO in the altcoin sector, suggesting that a major price increase may be on the horizon. He projected a target of $70,000 for Bitcoin within the next two weeks, with the possibility of reaching all-time highs by late October.
The shift in market dynamics is evident, as Bitcoin’s dominance has declined by 1.57% to 57.51%, according to TradingView data. Meanwhile, Ethereum gas fees have surged, indicating increased altcoin activity. Analysts believe this trend suggests that investors are shifting their focus from Bitcoin to alternative cryptocurrencies.
Factors Driving Altcoin Momentum
Thielen pointed out that if the US Federal Reserve remains open to cutting interest rates, high-beta altcoins are likely to gain momentum. His comments follow the Fed’s decision to cut rates by 50 basis points on September 18, which is seen as a positive signal for riskier assets. Lower interest rates make traditional investments less attractive, encouraging capital to flow into cryptocurrencies.
In South Korea, retail trading activity has surged, with daily volumes reaching around $2 billion. Shiba Inu has reclaimed the top trading volume spot, indicating rising speculation and potentially setting the stage for a rally in Q4.
Additionally, the recent stimulus package announced by the People’s Bank of China could contribute to optimism. As the Fed begins to cut rates, this stimulus may lead to significant capital outflows from China into the cryptocurrency market. Thielen speculated that this $278 billion package could trigger a sharp rally in crypto prices, reminiscent of the Bitcoin surge driven by Chinese exporters in 2013.
Caution on Altseason Timing
Despite the bullish indicators, Thielen cautioned that it may not yet be time to declare the start of altseason. According to the altcoin season index from Blockchain Center, it is not currently considered altcoin season, as only 41% of the top 50 coins have outperformed Bitcoin in the last 90 days, compared to the 75% threshold that signals an altseason.
The index shows a gradual increase, approaching levels seen after the Fed's rate cut, which peaked at 46%. With catalysts aligning in the market, analysts remain optimistic about the potential for a significant altseason, marking the biggest surge since 2017.
