- The imminent approval of the Clarity Act will trigger massive adoption of altcoins, led by institutional investors.
- The top beneficiaries of a clear crypto regulatory framework are decentralized networks led by Ethereum, and Solana.
- Today’s speech by Fed Chair Jerome Powell will have direct implications on the wider crypto market.
The recent Bitcoin (BTC) price drop below $113k has weighed down on the wider altcoin market. Palpable fear of a broader crypto correction lingers, stirred by mixed inflationary data and anticipation of Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium.
On Thursday, U.S. unemployment claims for the week ending August 16 were reported at 235,000, slightly higher than anticipated. Despite this, data from the Kalshi prediction market shows that following the latest CPI report, traders are pricing in a 60% probability of a 25-basis-point Fed rate cut in September, a significant increase that counters recent market anxieties.
Meanwhile, Kashi traders have been making more bets for the Fed to maintain its rate between 4.25% and 4.5%, whereby the odds have surged from 23% to about 37% in the past three days.
Why Bet on Altseason 2025 Soon
The altcoin season 2025 has been signaling a parabolic rally soon fueled by renewed demand from institutional investors. Since Ethereum (ETH) price rebounded above the multi-week resistance range between $3.8k and $4.1k, several altcoins – led by Binance Coin (BNB) and Chainlink (LINK) – have signaled macro bullish sentiment.
According to market data analysis from CoinGlass, the Altcoin Season Index has gradually surged to 51%, signaling a huge shift from a Bitcoin-dominated bull market.
Related: Arthur Hayes Turns Bullish on Ethereum, Sees $10K–$20K in 3-4 Years Under Trump Era
Moreover, the Bitcoin dominance has signaled a macro market reversal after closing below the 50-week Moving Average Simple (SMA) in the past three weeks.
Additionally, the Bitcoin dominance has closed below an established weekly rising logarithmic trend, amid renewed demand for altcoins by institutional investors.
Related:5 Signs That Tells Altseason Is About to Commence—What Are They?
Key Factors that Will Trigger a Parabolic Rally
The altcoin season 2025 will be triggered by several key events, especially in the United States. At the top list is a potential Fed rate cut, if President Donald Trump manages to influence the majority of the members of the Federal Reserve Board of Governors.
According to Altcoin Buzz, the upcoming vote on the Clarity Act will be a pivotal moment for the wider crypto market. The Clarity Act will reinforce the recently enacted GENIUS Act, thus further influencing the mainstream adoption of digital assets by institutional investors.
Some of the top altcoins expected to benefit from the Clarity Act include Ethereum, Solana (SOL), Cardano (ADA), and Algorand (ALGO).
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