- Bitensor and Sei are among the altcoins surging by over 60% in the past seven days.
- Dogecoin rises 8% as altcoins outperform Bitcoin, potentially signaling the start of an altcoin season.
- Altcoin market cap rebounds sharply after hitting a low in August, with predictions of a 74% increase.
Cryptocurrencies like Bitensor (TAO) and Sei (SEI) have exploded in value recently, with Bitensor up 68% and Sei surging 66.5% in the past week. These price spikes have fueled speculation about a possible altcoin season.
In addition to Bitensor and Sei, other altcoins are also performing impressively. Sui (SUI) has risen 45.6% over the past week, Popcat (POPCAT) jumped by 42.6%, and Aptos (APT) recorded a 37.0% gain. Even Dogecoin (DOGE) has seen an 8% rise in just three days and is nearing the crucial $0.12 mark, currently trading at $0.1092.
Altcoin Market Cap Recovers
The altcoin market has rebounded strongly after bottoming out in early August. On August 5, the total market cap for altcoins dropped to $865 billion but has since corrected upwards, now standing at $1.08 trillion, according to CoinGecko.
This recovery comes after a bearish period for Bitcoin, which has now stabilized, leading to renewed interest in altcoins. Historically, Bitcoin recoveries have often marked the beginning of altcoin seasons—periods when altcoins outperform Bitcoin.
Fed Rate Cut’s Impact on Crypto
One factor driving the recent surge is the U.S. Federal Reserve’s recent interest rate cut. By lowering rates, the Fed has made traditional savings and bonds less appealing to investors, who may now seek higher returns in riskier assets like cryptocurrencies. Altcoins, in particular, often serve as high-risk, high-reward investments during such economic conditions.
Increased trading volumes also suggest heightened investor interest. Bitensor, for example, recorded over $300 million in 24-hour trading volume, while Sei saw over $531 million. This influx of capital into digital assets may be a direct response to the rate cut, reflecting growing confidence in the sector.
Is This Trend Here to Stay?
While Bitcoin has dominated much of the crypto market this year, its dominance rate is showing signs of slowing down. The Bitcoin dominance rate (BTC.D) recently hit a new yearly high, but bearish signals in key indicators like the relative strength index (RSI) and MACD suggest that Bitcoin’s reign could be weakening.
The altcoin market cap (excluding Ethereum) has already started to break out of a descending resistance channel, suggesting that altcoins may continue to outperform Bitcoin through the end of 2024. This fits with historical patterns where altcoin seasons typically start when a significant number of altcoins outperform Bitcoin.
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