The altcoin season appears poised for a comeback, but what are the key triggers to watch ? Let's delve into the top 3 catalysts that could fuel the upcoming wave of alternative cryptocurrency rallies.
After Bitcoin’s impressive rally to $123,000, supported by the adoption of the GENIUS Act, the sector experienced a mini Altcoins season in July. However, this altseason wave lost momentum as Bitcoin consolidates below $120,000.
The Altcoin Season Index, an indicator measuring the pace of the Altcoin rally, has dropped below 50% after reaching 60% on July 1st. Although this decline might seem discouraging, the necessary conditions for a new wave of growth are still present.
The first potential catalyst would be an interest rate cut by the Federal Reserve. While markets don’t anticipate any changes at the July 30th meeting, there’s a 63.6% probability of a 25 basis point cut in September. This shift in expectations could favorably influence the crypto market and risk assets.
Another key catalyst could be the adoption of the CLARITY Act, a broader structural market law that could energize the entire market. Lawmakers have set a deadline for passing the CLARITY Act by the end of September. Combined with a potential rate cut by the Fed, this development could trigger a significant rally in Bitcoin and Altcoins.
The approval of Altcoin ETFs, including staking offerings for Solana and Ethereum, constitutes a third catalyst to monitor. Analysts estimate this could materialize by October. While the current altcoin season shows that the necessary conditions for such a wave remain present, this approval could provide additional support for the next recovery.
Each twist and turn in the cryptocurrency market holds its share of surprises. Although the next Altcoin season seems to be on the horizon, it’s essential to stay informed and ready to seize the opportunities that will arise. Keep a close eye on these three key catalysts, as they could well trigger the next wave of growth in the alternative cryptocurrency sector.
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
