Crypto investors are watching with bated breath as the June 12th Federal Reserve interest rate decision looms. History might be offering a cryptic message, with analysts divided on whether altcoins are headed for a repeat performance from the last market cycle.
Echoes of June 2019?
In an eerie parallel, altcoin and Bitcoin pairs witnessed a sharp decline in June 2019, right before the US Fed slashed interest rates. The current market cycle boasts an identical chart pattern, sparking fears of a similar “final flush” for altcoins before the upcoming Fed decision.
However, recent strong US jobs data has thrown a curveball. This positive economic indicator could prompt the Fed to maintain current rates, potentially leading to a different outcome for the crypto market.
Analyst Optimism Persists
Despite the uncertain short-term outlook, some analysts remain bullish on altcoins. Moustache, a popular crypto analyst, compared the current cycle to the last, highlighting structural similarities. While acknowledging that history may not precisely repeat itself, Moustache believes it can offer valuable insights.
Michaël van de Poppe, co-founder of MN Trading, remains optimistic about altcoins. He expects a “bullish breakout” in the coming week and is confident in his altcoin holdings. Similarly, Mister Crypto, a prominent influencer, anticipates an imminent “altseason” following a potential Bitcoin price floor.
Bitcoin Dominance: A Key Indicator
Market dominance by Bitcoin is a crucial metric for gauging altcoin rallies. Currently, Bitcoin holds a dominant position at 55.2%, a significant rise since the year began (according to TradingView). This dominance needs to fall below 50% for a substantial altcoin surge to materialize, something that might not happen immediately.
Also Read: Notcoin (NOT) Soars 10% in 24 Hours: Telegram Game Altcoin Up 300% in a Week – Can it Reach $0.1?
Ethereum: The Potential Leader?
Ethereum, often a frontrunner in altcoin rallies, has also experienced a recent setback, dropping over 3.3% in the past week. The broader altcoin market witnessed a similar slump, with coins like Toncoin, Shiba Inu, and Near Protocol experiencing heavier losses.
Volatility Ahead?
If the Fed opts to maintain current interest rates, the crypto market, especially altcoins, could face a period of heightened volatility before any significant gains. Investors should exercise caution and closely monitor market developments before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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