A crypto analyst claims that FOMO has been sparked in the altcoin market by Bitcoin’s ascent beyond $65,000.
According to a cryptocurrency specialist, there is a reasonable likelihood of a bullish surge in the much-awaited fourth quarter when Bitcoin has recovered over the $65,000 price.
In a report published on September 27, head of research at 10x Research Markus Thielen said, “The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded.”
As Bitcoin hits $65,000, Altcoin FOMO is back.
According to Thielen, a price breakthrough of Bitcoin BTC$65,623.45 above $65,000 has “fueled” the return of FOMO, or fear of missing out, to the altcoin market. Thielen states, “A significant uptick may be approaching, causing even more FOMO throughout the cryptocurrency space.”
As of the time of publication, CoinMarketCap statistics indicate that the price of Bitcoin is $65,424.
The Altcoin Speculation Index at Capriole Investments is now at 23%, up 13% in the last 30 days. This index measures the proportion of altcoins outperforming Bitcoin over ninety days; higher readings indicate increased market speculation.
Since September 20, when it surged 37.79%, Sei SEI$0.4618 has led the top 100 cryptocurrencies in gains over the last seven days. Wormhole (W), up 32.83%, and Shiba Inu SHIB$0.00001948, up 32.08%, are next in line.
Thielen reports that SHIB has gained popularity among South Korean retail investors this week:
“In the past 24 hours, Shiba Inu has reclaimed the top spot in trading volume in South Korea, signaling rising speculation and setting the stage for a potential Q4 rally.”
According to TradingView data, since September 20, Bitcoin’s dominance has somewhat decreased amidst the growth of the altcoin market, falling by roughly 1.57% to 57.51%.
Traders frequently use this indicator to estimate possible capital movements from Bitcoin to altcoins.
Meanwhile, the Crypto Fear & Greed Index has increased by 11 points since September 26 and now stands at 61 for “Greed.”
More rate reductions will only boost interest in alternative currencies.
High-beta altcoins are expected to gain more traction if the US Federal Reserve “remains open to cutting rates,” according to Thielen.
His remarks coincide with the US Federal Reserve’s announcement on September 18, which reduced interest rates by 50 basis points, signaling a bullish outlook for riskier assets. Due to declining interest rates, traditional assets like bonds and term deposits become less tempting to investors.
On social media, several cryptocurrency analysts warned that the altcoin bull run is only getting started and predicted much more significant increases in the future.
In a September 27 X post, Michael van de Poppe, the founder of MN Trading, said, “Altcoins are waking up significantly, but this is nothing compared to what we’re going to be seeing in the coming six months.”
It will be magnificent. As it is now, van de Poppe continued.
Joe McCann noted that “90% of all altcoins on Binance are above their 50-day moving averages” that same day.
Crypto expert Miles Deutscher continued, “Altcoins are about to break out of a multi-month downtrend.”