Exceptional Odds for Q4 Crypto Rally, Driven by BTC Surging Past $65K
Bitcoin Surges Past $65,000, Setting Stage for Potential Altcoin FOMO
The highly anticipated fourth quarter of 2024 has begun with Bitcoin making significant strides, surpassing the $65,000 price mark. This development has laid the groundwork for a potential bull rally, according to Markus Thielen, head of research at 10x Research.
Altcoin FOMO Returns As Bitcoin Reaches $65,000
Bitcoins climb above the $65,000 level has instigated a fear of missing out (FOMO) within the altcoin market. Thielen noted in his September 27 report that Bitcoins breakout has fueled FOMO across the board. At the time of writing, Bitcoin (BTC) is trading at $65,424, as per CoinMarketCap data. This price increase is also reflected in Bitcoins seven-day performance, showing a gain of 3.04%.
The Altcoin Speculation Index
Capriole Investments Altcoin Speculation Index, which monitors the proportion of altcoins outperforming Bitcoin over 90 days, has surged to 23%a 13% increase in the past 30 days. Higher readings on this index typically indicate heightened speculation in the crypto market.
Top Performers: SEI, Wormhole, and Shiba Inu
Leading the charge among the top 100 cryptocurrencies over the past week is Sei (SEI), with a staggering gain of 37.79% since September 20. Following closely behind are Wormhole (W) with a 32.83% increase and Shiba Inu (SHIB) at 32.08%. SHIB has notably regained popularity among South Korean retail investors, which further indicates growing speculation. Thielen observed, In the past 24 hours, Shiba Inu has reclaimed the top spot in trading volume in South Korea, signaling rising speculation and setting the stage for a potential Q4 rally.
Bitcoins dominance has dipped slightly by 1.57% to 57.51% since September 20, as per TradingView data. This metric is often used by traders to gauge capital shifts from Bitcoin to altcoins.
The Fear & Greed Index
Another essential indicator, the Crypto Fear & Greed Index, has climbed by 11 points since September 26, now sitting at a Greed score of 61. This suggests growing investor confidence but also warns of potential over-exuberance.
Additional Rate Cuts Will Increase Altcoin Interest
Thielen further speculates that if the US Federal Reserve remains open to cutting interest rates, high-beta altcoins could gain even more momentum. This comes on the heels of the Feds decision on September 18 to cut interest rates by 50 basis points. Lower interest rates generally make traditional investments such as bonds and savings accounts less attractive, thereby driving more interest towards riskier assets like cryptocurrencies.
For more about the Federal Reserves impact on the crypto market, check out this article.
Several other crypto analysts have echoed Thielens optimistic outlook, predicting an upcoming altcoin bull run. Michael van de Poppe, founder of MN Trading, mentioned in his September 27 X post, Altcoins are waking up significantly, but this is nothing compared to what were going to be seeing in the coming 6 months. Its going to be glorious. It already is.
Similarly, Joe McCann pointed out that 90% of all altcoins on Binance are above their 50-day moving averages.
FAQs
What is FOMO in the context of cryptocurrency?
Fear of missing out (FOMO) is an emotional response that compels people to act quickly to avoid missing potential gains. In the crypto market, FOMO often leads to quick investments during a strong price surge.
How does the Altcoin Speculation Index work?
The Altcoin Speculation Index tracks the percentage of altcoins outperforming Bitcoin over a given period. Higher readings indicate increased speculative interest in altcoins.
Why are interest rate cuts significant for cryptocurrencies?
Declining interest rates reduce the appeal of traditional investments such as bonds and savings accounts, driving investors to seek higher returns in riskier assets like cryptocurrencies.
Conclusion
In summary, Bitcoins resurgence above the $65,000 mark has triggered renewed interest and FOMO in the altcoin market. With indicators like the Altcoin Speculation Index and the Crypto Fear & Greed Index pointing toward a bullish trend, and additional rate cuts potentially driving more capital into cryptos, the stage is set for a compelling fourth quarter in the cryptocurrency space. However, as always, investors are advised to conduct thorough research before making any trading decisions.
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Text source: CoinRevolution
