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Key Takeaways
What’s driving the recent altcoin rotation?
Post-FOMC flows are rotating: $80 billion into altcoins, with ETH/BTC and high-caps like BNB outperforming BTC, signaling capital chasing higher-beta plays.
How’s BTC holding up versus alts?
Bitcoin is holding $117k and eyeing $120k, but alts are running hotter.
Looks like the market’s setting up for another rotation cycle.
On the 17th of September, right after the FOMC chop, Bitcoin dominance [BTC.D] slipped 1.08% to 57.67%, marking the biggest daily drawdown after three straight sessions of upside.
TOTAL3, meanwhile, printed +2.24%, pressing into the $1.16 trillion cap and signaling alt bid momentum. Even memecoins outperformed with a +5.20% pop, showing liquidity bleeding further down the risk curve.
Source: CoinMarketCap
Simply put, flows look like they’re rotating risk back into alternative assets.
Backing this shift, the ETH/BTC ratio caught a +2.28% bounce after four days of bleed post a failed 0.04 breakout. The move now resets the pair at 0.039, basically lining up a potential round two at that resistance zone.
According to AMBCrypto, a clean break would confirm broader altcoin rotation. However, with the Altcoin Season Index already hitting 80 twice this week, the rotation bid looks like it’s already cooking.
Fed jitters fuel $80 billion altcoin rotation
Most high-caps are outpacing Bitcoin this month.
Binance Coin [BNB], for example, is up 18% (doubling BTC’s 8.79% move), cracking a fresh all-time high above $1,000.
The BNB/BTC ratio is ripping +8%, showing altcoins are flexing dominance beyond Ethereum [ETH].
On-chain flows back this rotation. BTC.D slid post-FOMC, while TOTAL market cap jumped to $4.07 trillion, adding nearly $80 billion.
That’s 100% of the capital rotating into altcoins, even with the Fed’s 25bps cut.
Source: TradingView (TOTAL/USTD)
Simply put, post-FOMC risk recalibration has altcoins catching serious bid.
Meanwhile, Bitcoin’s [BTC] holding $117k and eyeing $120k, but altcoins are running hotter, with flows chasing plays beyond ETH.
In short, volatility remains elevated, and altcoin season looks set to dominate into Q4.
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