The Memecoin sector is heating as the new conversations of the Altcoin season are beginning to grow on social networks, partly promoted by the expectations that the Federal Reserve this week will reduce interest rates, a blessing for risk assets.
Bitcoin market domain has fallen 3.5% in the last month, and its low performance in relation to Altcoins has now seen Altcoin seasonal indices, which measure the performance of the main cryptocurrencies against BTC, enter the territory “Altseitors”.
The Altse season, abbreviation of the Altcoin season, refers to a period in which alternative cryptocurrencies significantly exceed Bitcoin. It often begins as capital revolves from Bitcoin in the midst of growing risk appetite.
Those include coinmarketcap and coinglass indices. In the last 24 hours, Bitcoin increased only 0.3%, while the Coendesk memecoin index (CDMEME) increased 7.1%.
At prices prices in the CDMEME index are some tokens such as Shib and Bone, which recently arose disconcertingly after the Shiba-2 network of Shiba Inu, Shibarium, suffered a flash loan exploit.
The growing performance of Altcoins comes from the growing appetite of risk, since the reduction of interest rates causes the safer investments such as government bonds to be less attractive. This renewed risk appetite is feeding a capital cascade rotation in all markets.
Merchants in the prediction market now see 92% chance that the Federal Reserve reduces interest rates at 25 basic points this month, and a 7% probability that the rate is 50 bp. In the CME Fedwatch tool, the probabilities of a smaller cut are 93%, while the probabilities of a larger cut are 6.6%.
In this context, a wave of funds quoted in Altcoins exchange (ETF) It is online to hit US markets in the last quarter of the year if they are approved. These even include a dogado ETF and an ETF Trump.
If approved, these ETFs could bring more retail and institutional investors to the Altcoin space by offering regulated access to cryptocurrencies beyond BTC and ETH, whose ETF spot in the United States has accumulated billions in assets.
