
Jakarta, Pintu News ā After months of sluggishness, the altcoin market is finally starting to show signs of revival. Reporting from Coinpedia (5/8), the Altcoin Season Index jumped from 34 to 50 in just a matter of weeks, signaling momentum is starting to build.
Popular crypto trader VirtualBacon thinks that we may have already entered the early phase of altcoin season-thoughmany people havenāt really felt it yet.
So, what exactly is going on in the crypto market right now?
According to VirtualBacon, the altcoin season probably started 2-3 weeks ago. However, many people havenāt realized it yet.
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The reason is simple: price movements are still slow and only occur on certain coins.
Unlike the previous altcoin season, where almost all crypto assets rose together, this time only a handful of coins moved ā and even then quietly.
Meanwhile, Bitcoinās dominance is slowly declining and now stands at 61.5%. Usually, this is a signal that capital is starting to exit Bitcoin and flow into altcoins.
One of the major events to look forward to is the next Federal Reserve (Fed) meeting in September.
Recently, the Fed held rates without any surprises, but the next meeting could bring a change in policy direction.
There are speculations that the Fed might relax the Supplementary Leverage Ratio (SLR) rule. If this happens, banks can buy more US government bonds with lower cash requirements, which will essentially increase liquidity ā meaning more money flows into the market.
On the other hand, the US Treasury is replenishing their TGA account, which usually sucks liquidity out of the market. But if the SLR rule is actually relaxed, these effects could neutralize each other-or even generate new fund flows into the market.
According to VirtualBacon, the rise of altcoins this time is likely to be slow but steady, rather than a sudden price explosion.
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He suggests monitoring major coins such as Ethereum , Solana , Ripple , and Binance Coin . If the market starts to move faster, these major coins are likely to lead the trend.
Even so, he also cautioned that small altcoins remain high-risk.
This cautious view is in line with a warning from renowned trader Crypto Rover. According to him, the current market phase is a survival phase. Not all altcoins will perform well.
In the past, even weak projects could rise just because of the hype. But now, traders are getting smarter, and only coins that have strong fundamentals will survive.
Until there is a major event that changes the direction of the market, it is likely to remain in a waiting mode.
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*Disclaimer
This content aims to enrich readersā information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an assetās past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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