The highly anticipated Altcoin season It may not yet be here, but there is growing confidence that it is only a matter of time. According to a financial analyst, the recent updates of the American federal reserve pave the way to what could be a major decision on the cryptography market, but not immediately.
In fact, this “calm time” could be the best chance of preparing before Altcoins finally take off.
Fed maintains unchanged prices
The American federal reserve has decided not to reduce interest rates – again. It was the fourth consecutive time that they have taken a break, Keep the rates from 4.25% to 4.50%. The reason? Inflation is still too high. Central inflation is 2.8%located, while the Fed wishes it closer to 2%.
This means that no fresh money is pumped on the market right now. And without that, altcoins often have trouble getting up significantly.
Large Altcoin rallies generally need additional liquidity, inexpensive money, lower interest rates or stimulus to really explode.
Altcoins in accumulation phase
At present, the Altcoin market is in which experts Call the “accumulation phase.“The prices are not crushed, but they do not hover either. Many pieces are simply moving aside. It is a silent area, and it is at this time that intelligent investors generally build their positions.
Altcoins needs two things to trigger a full rally:
- A drop in Bitcoin dominance (which is still solid above $ 100,000)
- A return of market liquidity (which is accompanied by drops in rate or printing more money)
Until then, Altcoins will mainly move according to their individual projects, their news and their development progress.
The Altcoin season is not canceled – just delayed!
One of the largest triggers will be the American federal reserve which finally reduces interest rates. It could happen later this year. When he will, he will unlock more money and liquidity on the market.
And it is exactly at this time that altcoins should take off significantly.
Adding to this excitement, the Altcoin index has just confirmed the entry into the famous 4 -year cycle area, the same diagram that led to massive Altcoin rallies in 2017 and 2021. This signals that altcoins could soon be ready for another explosive race.