As financial markets eagerly await the upcoming decisions of the U.S. Federal Reserve, the cryptocurrency market is experiencing a significant transformation. The current dynamics, driven by technical signals and a reconfiguration of liquidity, are indicating a potential rise in altcoins. With hopes for rate cuts and the possibility of an “altcoin season” beginning, this period is crucial for investors seeking strategic opportunities.
The anticipated rate cut by the U.S. Federal Reserve, led by Jerome Powell, is expected to be announced on December 15th. This decision is highly anticipated by financial markets, especially as the return of liquidity is crucial to support risk assets like cryptocurrencies. Crypto analyst Jonathan Nowak stated, “If rates drop, it will be extremely positive for the markets,” estimating a high probability of this trend being confirmed. Recent data on employment and unemployment in the U.S. released in December also play a key role in the decision-making process. The slight increase in the unemployment rate, reaching million in November, indicates a potential slowdown in the U.S. job market, prompting the Fed to act quickly to stabilize the economy.
The Total, an indicator that groups the market capitalization of altcoins excluding Bitcoin, Ether, and stablecoins, has confirmed a breakout to the upside of a graphical structure called a “bull flag.” This technical configuration suggests a chance of continuing to push towards new highs, highlighting the explosive potential of altcoins for the month of December. Additionally, Bitcoin’s dominance is showing signs of weakness, historically preceding a transfer of value to altcoins. The increase in volumes and liquidity, particularly through USDT, further confirms the beginning of the altcoin season.
Some altcoins are particularly catching the attention of experts for their growth potential in the current market. Projects like Optimism (OP), based on layer technology linked to Ethereum, have crossed decisive technical thresholds and show promising growth potential. The Artificial Superintelligence Alliance (ASI), born from the merger between Fetch.ai and other artificial intelligence initiatives, also offers interesting potential. Notcoin (NOT), ranked th in terms of market capitalization, presents high growth potential and has not yet experienced a significant rise, making it a prime target for calculated risks.
As technical and macroeconomic signals point to an explosive end to December, altcoins offer significant return prospects for savvy investors. Projects like Optimism, ASI, and Notcoin are positioning themselves as serious candidates to capture this new wave of liquidity. However, caution is advised as market volatility could lead to short-term corrections before reaching historical highs. For strategic investors, this end of the year could mark the beginning of a euphoric period in the altcoin market.