Following the strong sentiment around the possible altcoin season and the expectation of a mega rally in the altcoin market, FOMO has finally calmed down for the better. Last week, we saw altcoins correcting between 10-20%, except for a few altcoins like Ethereum. Here are Santiment’s interesting data and comments on the subject…
Is the altcoin season excitement fading?
The “altcoin season” expectation and great rise excitement, which have been frequently heard in the cryptocurrency market in recent months, are being replaced by calmness. Many altcoins other than Ethereum have experienced corrections ranging from 10% to 20% over the past week. This shows that the feeling called “FOMO” (Fear Of Missing Out) in the markets has decreased significantly. According to analysis by data provider Santiment, increasing rhetoric about altcoin season generally coincides with market peaks. This suggests that investors turning to altcoins with excessive ambition indicates a potential market peak.
However, the decline in FOMO after the peak in March could create a huge opportunity for investors. Santiment data suggests that the current market sentiment could see us approaching a bottom, which could be a buying opportunity for smart investors. As FOMO levels reach 2024 lows, investors waiting for the market to calm down may consider taking action again. In particular, according to Santiment data, there is a significant decline in audience sentiment towards large-cap altcoins, including Shiba Inu (SHIB), Dogecoin (DOGE), and XRP, following recent price declines.
Is it too early for bullish expectations?
Although the Bitcoin price is approaching all-time highs, most altcoins are still trading below their peaks. Famous cryptocurrency analyst Benjamin Cowen stated that enthusiasm for a recent altcoin bull run may be a little premature. Cowen thinks it is unlikely that a significant rise will occur before the US Federal Reserve (Fed) starts cutting interest rates. Historically, altcoins have always delivered strong returns following the Fed’s rate cuts. Cowen made the following statements:
The decline seen in most altcoins reflects the decline in the advance/decline index, reminiscent of the period leading up to the Fed’s interest rate cuts in 2019. This index had fallen sharply before the Fed started interest rate cuts in July 2019. It is important to follow these movements because without Fed interest rate cuts, the expectation of an altcoin season that will end Bitcoin’s dominance may be premature.
In conclusion, cryptokoin.com According to Santiment’s statement, which we quoted as, the market environment where calmness prevails instead of excitement may create new opportunities for investors. However, as analysts point out, it will be useful to closely follow macro-economic developments such as the Fed’s interest rate cuts.
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