Altcoins Ready to Rally as US Liquidity Surge Hits Market

U.S. Liquidity Surge Could Trigger Altcoin Season as TOTAL2 Holds Key Support

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end of the U.S. government shutdown is expected to inject billions in liquidity, boosting risk assets like altcoins.
  • The end of the US government shutdown could trigger a liquidity surge benefiting crypto markets.
  • TOTAL2 market cap holds above key Fibonacci levels, targeting $1.19T as the next bullish threshold.
  • XRP and Solana show strong institutional and technical setups for breakout continuation.

The crypto market is entering a pivotal week with the federal government reopening and the Treasury General Account (TGA) expected to inject billions into the financial system, traders are closely watching how this renewed liquidity will impact risk assets, especially altcoins.

Related: Momentum Builds Across 30 Peak Indicators For a Crypto Market Bull Run — Analyst

Macro Catalysts: Shutdown’s End and Fed Injections

Bitcoin Holds Firm as Liquidity Flows In

Bitcoin whales have been accumulating aggressively between late October and early November, doubling their holdings in wallets containing over 10,000 BTC. This accumulation has helped Bitcoin maintain strong support above the $100,000 mark, indicating potential for a major rally.

Historically, liquidity injections from the Federal Reserve have coincided with crypto market upswings, and this time may be no different. The Fed’s recent $125 billion injection via the Standing Repo Facility (SRF) and potential $2,000 dividend payments proposed by President Trump could further fuel drive risk assets.

TOTAL2 Holds Key Support as Altcoins Await Breakout

The TOTAL2 chart, representing the crypto market cap excluding Bitcoin and Ethereum, currently stands around $973 billion. The market is recovering from an earlier dip near $872 billion and is holding above key Fibonacci retracement levels (0.236 at $918B and 0.382 at $946B).

A sustained break above the $1.07 trillion mark (0.618 retracement) could open the door for a rally toward the 1.618 Fibonacci extension at $1.19 trillion.

Source: TradingView

Momentum indicators such as RSI (currently near 46) and CMF (hovering around +0.03) show moderate accumulation, suggesting the market is quietly rebuilding strength.

If liquidity continues to expand, a measured move toward $1.38 trillion (2.618 Fib level) could mark the beginning of the next altcoin season.

XRP, Solana, Sei, and Aptos: Key Beneficiaries

XRP stands out with strong fundamentals driven by speculation around an XRP ETF and Ripple’s regulated stablecoin project, RLUSD. These developments, along with partnerships involving Mastercard and pilot programs for instant settlement, position XRP as a leader in blockchain adoption.

Solana dominates decentralized exchange (DEX) activity and NFT volume, maintaining roughly $1 million in daily network revenue. Also, nine consecutive days of positive ETF inflows show institutional confidence, making SOL potentially the next crypto to explode in 2025.

Sei Network has gained attention due to its ultra-efficient architecture and institutional validation from Binance. Meanwhile, Aptos benefits from strong on-chain fundamentals, including over $1.49 billion in stablecoin capitalization and partnerships with Chainlink and Decentralized Trade.

Related: 3 Key Signals Pointing Toward an Impending Altcoin Season

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