The post Crypto Market News: Analyzing Altcoin Trends and Their Economic Predictors for 2024-25 appeared first on Coinpedia Fintech News
Is an Altseason combining? This said question has been circulating in social media platforms for the last couple of days. Whether it is the right time to put forth such a question is a matter of debate. Anyway, at this juncture, it seems pertinent to make an attempt to understand the currency market scenario of Altcoins. Here are a bunch of elements which can better explain the current Altcoin landscape. Let’s go through them one by one.
Altcoin Market Outlook: How Economic Shifts and Key Events Will Shape the Future
In a series of posts, published in X, a crypto expert, identified as ‘Crypto, Distilled,’ discusses a wide range of elements, including macro economic, and even political factors, which can influence the future of the Altcoin market.
Altcoins & Positive Macro-Economic and Political Events
The post series opens with a positive note. It shares a feeling of hope that despite the current underperformance of the market, the market might see a strong positive momentum in the future. To justify that argument, it emphasises the upcoming positive macroeconomic and political events like the potential interest rate cuts in September and the upcoming US presidential election in November.
Altcoin Investors’ Disappointment
The post series recognises the existing disappointment among Altcoin investors. It reveals that the Altcoin market has been underperforming since November 2022.
Extreme Dominance of Top Altcoins
The post series brings to the forefront the issue of the excessive dominance of some top Altcoins in the market. As per the post series, only less than 13 % of Altcoins are giving a competition to Bitcoin right now in terms of market performance.
Factors Influenced Crypto Performance
The post series also speaks about the four important events that has impacted the performance of the crypto industry, especially Bitcoin and Ethereum, in the recent past.
These factors include the introduction of Bitcoin Spot ETFs, the occurrence of Bitcoin halving, the approval for Ethereum Spot ETFs and the partial legal victory of Ripple against the United State SEC.
The post series portrays the launch of Bitcoin spot ETFs as an event that contributed to the disruption of the growth trajectory of the Altcoin market. It claims that the same event benefited Bitcoin.
Altcoin Crisis: US Economic Uncertainty
The post series expresses its dissatisfaction towards the present economic uncertainty in the United States. It brings attention towards issues like rising unemployment and high interest rates. It exposes the trend of investors choosing safer assets over Altcoins due to economic uncertainty.
Trump’s Possible Victory & Pro-Trade Sentiment
The post series gives a hint about the possible positive impact the markets like Altcoins may experience in the case of a victory of Donald Trump in the US election in November. It notes how small-cap stocks outperformed large-cap stocks nearly 8 per cent post the 2016 US election, in which Donld Trump marked an astonishing victory over his opponent, Hilary Clinton, to become the US president.
Rise in Global Money Supply
The post series also covers the macro economic factor of increasing global money supply. It explains how this development can positively impact the price of cryptocurrencies. An increase in money supply naturally leads to an increase in asset price. The post series also relies on the said principle to justify its argument about the possible increase in the Altcoin price in future.
Looming Recession Fear and Its Impact
The post series shares its fear about the looming recession fear in the market. Naturally, during tough times, investors tend to show less interest in risky assets like Altcoin. The post series hints about the possibility for the emergence of a lack of interest in risky assets in light of this looming recession fear in the market.
The post series concludes that if the expected interest rate cuts works positively and brings stability to the market, the situation will turn in favour of Altcoins, enabling Altcoins to bring down the dominance of Bitcoin in the cryptocurrency market. It adds that as long as this economic uncertainty continues, Altcoins may have no strength to strongly challenge the dominance of Bitcoin in the crypto market.
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