As experts predict the return of an altseason in the cryptocurrency market with new momentum, investors are advised to exercise caution. Russian analysts believe that the market is entering a more active phase after a relatively quiet summer. Despite September traditionally being a weak month for crypto, the overall market value of cryptocurrencies has continued to rise since the beginning of the month. Factors such as Bitcoin prices consolidating above $65,200 and global events like the Federal Reserve cutting interest rates and the upcoming US presidential election are expected to play a significant role in the market’s movement.
VG GROUP Managing Partner Vagiz Nurullov pointed out that the market is witnessing an increase in open interest, indicating a growing appetite for risk among traders. With upcoming events like FTX investor repayments, the Fed’s rate cuts, and the US elections, the market is poised for potential growth. Experts like Oleg Kalmanovich at Neomarkets are optimistic about the impact of the Fed’s rate cuts on risky assets like cryptocurrencies. Large capital is expected to redirect towards assets such as altcoins, driving up crypto activity in the market.
Despite the positive outlook for an altseason, experts urge caution as the upcoming season may differ from previous ones. With a wide range of new crypto projects available, traders will need to navigate through various options when making investment decisions. Nurullov predicts a first wave of growth by early November, followed by a second wave around March, depending on the outcome of the US elections. Analysts like Kalmanovich suggest focusing on projects that are slightly behind the growth schedule but not yet significantly overbought, such as NEAR, XRP, and Polkadot, which could benefit from lower rates in Western economies.
As the market prepares for potential growth in altcoins, investors are advised to stay informed about global factors like the US labor market data and the US presidential election. These events are likely to impact the market’s performance, especially in the context of increasing interest in cryptocurrencies. While the market is currently in a stage of awakening, positive forces like investor repayments and rate cuts are expected to drive the market towards an upward direction. It is crucial for investors to exercise caution and conduct thorough research before making investment decisions during this anticipated altseason.
