Altcoins Could Soar If the Fed Makes This Key Move Soon
2025 is shaping up to be explosive for cryptocurrencies! With Bitcoin still leading the way, altcoins are buzzing in anticipation of a legendary "altseason." What could trigger this tidal wave, and which projects will captivate investors?
The world of cryptocurrencies is buzzing. Investors in France and beyond are looking towards 2025 with one burning question: Is the long-awaited “altseason”—the period where altcoins outshine Bitcoin with remarkable increases—finally within reach?
Between the Federal Reserve’s monetary policy, Bitcoin’s dominance, and the rise of innovative projects, here’s why 2025 could be the year for altcoins, and which tokens to keep a close eye on.
Currently, Bitcoin (BTC) reigns supreme, capturing over 65% of the total crypto market capitalization. The “king” crypto attracts capital, along with stablecoins, leaving altcoins in the shade.
Global economic uncertainties like inflation, trade tensions, are driving investors towards assets seen as havens, such as gold or Bitcoin.
With QT continuing, it seems likely that #ALT / #BTC pairs will continue dropping (and Bitcoin Dominance will likely go to 66% soon).#ALT / #BTC pairs will likely drop to 0.32 (currently 0.34) with an eventual target of 0.25. pic.twitter.com/ghp0a9087u
But this dominance could soon waver. According to analysts like Benjamin Cowen, the ALT/BTC ratio, a key market cycle indicator, shows that altcoins could still decline in the short term against Bitcoin. However, a reversal is looming, and it could be spectacular.
Will the Fed’s Policy Trigger a Crypto Boom ? Top Altcoins to Watch
The real catalyst for an altseason could come from across the Atlantic. If the Fed shifts from quantitative tightening (QT) to monetary easing (QE) and rate cuts by late 2025, the markets could be flooded with liquidity.
“A pivot to QE would be like pouring gasoline on the altcoins’ fire,” explains an analyst. “Their volatility and explosive profit potential would make them the stars of such a market.” But beware: the timing remains uncertain, and investors will need to stay nimble.
If the altseason materializes, which projects could shine? Here’s a selection of tokens and sectors capturing investors’ attention:
Promising Ecosystems: Projects like The Open Network (TON), Sei (SEI), or Kaspa (KAS) are captivating with their innovations. TON, for instance, impresses with its integration with Telegram, while Kaspa banks on an ultra-fast blockchain.
Web3, Gaming, and NFTs: Tokens like Gala (GALA) and Flow (FLOW) ride the wave of blockchain games and NFTs’ rise. With increasing adoption, these projects could skyrocket if the market heats up.
Meme Coins, Speculative Thrills: Pepe (PEPE), FLOKI, or dogwifhat (WIF) remain risky yet irresistible bets. Driven by passionate communities and viral buzz, they can offer rapid gains… or harsh losses.
AI and Interoperability: Pyth Network (PYTH), for its decentralized oracles, and Bittensor (TAO), in decentralized AI, embody the future. Their disruptive potential attracts the gaze of visionary investors.
2025 could mark a turning point for altcoins. A Fed pivot towards accommodative policy could trigger a wave of enthusiasm, propelling innovative projects to new heights. But in this volatile market, caution reigns supreme.
To stay ahead, rely on rigorous analysis: study project fundamentals, their team, real-world adoption. Promising altcoins abound, but only the strongest will turn hope into profits.
Ready to ride the altseason wave? Keep an eye on these tokens and stay informed.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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