As the cryptocurrency market gears up for the upcoming Federal Reserve rate decision on June 12, analysts are drawing parallels to previous market cycles. The situation in June 2019 saw altcoin and Bitcoin pairs capitulating just before a rate cut by the Federal Reserve. Fast forward to the current market scenario, and the chart patterns are eerily similar, leading many to believe that a final flush out of altcoins may be on the horizon. While the recent fall in crypto and stock markets due to U.S. jobs data could indicate a status quo in interest rates, experts are still optimistic about an impending altseason.
Renowned crypto analyst ‘Moustache’ recently compared the last market cycle with the current one, highlighting the structural similarities and emphasizing the cyclical nature of market history. Similarly, MN Trading cofounder Michaël van de Poppe expressed confidence in a bullish breakout in the coming week, with a favorable position in altcoins. ‘Mister Crypto’, who boasts a significant following, suggested that Bitcoin season has potentially bottomed out, paving the way for an upcoming altseason. Industry observer ‘Viktor’ also shared a comparable chart, indicating past market positions and suggesting a potential rally on the horizon.
One crucial indicator of an impending altcoin rally is Bitcoin market dominance, currently standing at 55.2%. While this figure has seen a steady increase since the beginning of the year, experts believe that a substantial drop below 50% is necessary for a true altseason to kick in. The spotlight has been on Ethereum as a potential leader in any altcoin surge; however, recent setbacks have seen ETH retreat by 3.3% over the past week, trading at $3,680 on June 9. The broader altcoin market has also faced challenges, with prominent losses in coins like Toncoin (TON), Shiba Inu (SHIB), and Near Protocol (NEAR).
As the Federal Reserve contemplates leaving interest rates unchanged at 5.25% to 5.50%, the cryptocurrency markets, particularly altcoins, may experience heightened volatility and uncertainty. With historical patterns mirroring the current market cycle, investors and analysts are cautiously optimistic about the potential for an altseason. Whether the Fed’s decision will trigger a surge or further downturn in the crypto market remains to be seen, but one thing is for certain – the coming days will be crucial in shaping the future trajectory of altcoins.