The recent fluctuations in the cryptocurrency market have turned the attention of investors to alternative cryptocurrencies. This is marking the “alt season” by some economists. Macro economist Henrik Zeberg also believes crypto markets are poised for a new altcoin season.
Zeberg believes that the US Federal Reserve has finished raising interest rates and predicts an alt season may be on the horizon. According to the famous economist, greed will eventually kick in as markets price in a Fed pause.
“Altcoin season is not quite here yet. Greed needs to kick in. This development will be shaped by the decisions made by the FED.”
Zeberg also noted that the momentum for both Bitcoin (BTC) and Ethereum (ETH) has been slowing lately. The economist has a chart for this from crypto-focused hedge fund Swissblock. shared.
With the momentum for Bitcoin breathing, the macro economist believes that BTC could give bulls a “buying opportunity from the bottom”.
“DXY [ABD dolar endeksi] We may see a pullback in Bitcoin as it rises in the coming weeks. However, this could be a GREAT OPPORTUNITY to open long positions.”
Despite short-term declines in bitcoin and crypto, Zeberg thinks the asset will rise rapidly in the coming months.
“When is the impending collapse? Where are the bears that have been calling for this since October? Stocks and risky assets take flight!”
At the time of writing, Bitcoin is trading at $28,127.
What is altcoin season?
The term “altcoin season” refers to a period of increased investment in other cryptocurrencies other than Bitcoin, which is popular in the cryptocurrency world. This period usually occurs when the Bitcoin price is stable or falling, and investors invest in different altcoins in hopes of high returns.
Altcoin season is a time when market sentiment is heightened, investors are prone to take risks, and the cryptocurrency market is generally growing. During this period, investors generally prefer altcoins (such as Ethereum, Ripple, Litecoin) with the largest volume after Bitcoin, but coins with smaller market caps may also attract investors.
Altcoin seasons are usually short-lived events and investor returns are largely dependent on market volatility. Therefore, it is recommended that investors always consider their risks and potential returns and carefully consider their investment decisions.
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