Analysts Predict the Largest Altcoin Market to Rise to $4 Billion Market Cap
The latest data released from the USA provided a noticeable rise in the market, supported by the dovish Fed and the Quick Rate Adjustment (QRA). While employment data released on Friday showed weaker numbers than expected, the Nonfarm Payrolls show a net addition of 175,000 jobs versus the 240,000 predicted.
The Unemployment Rate also rose modestly to 3.9%, as opposed to the expected 3.8%, while Month-over-Month Average Hourly Earnings rose only 0.2%, below the expected 0.3%. These figures show that inflation concerns have disappeared and therefore the next monetary policy will take shape.
The Federal Reserve’s Impact on Financial Markets
Simultaneously, dovish stances by the Federal Reserve and Treasury led to a dramatic shift in interest rate expectations, driving US 2-year yields down from above 5% to around 4.7%. As a result, this massive yield decline raises doubts about the US Dollar bullish momentum witnessed in the market recently.
The money market appears more attuned to a softer dollar regime as investors adjust their outlook for rate cuts next year.
Reaction of the Cryptocurrency Market
cryptocurrency The market reacted positively to the overall financial market. As a result, Bitcoin spot Exchange Traded Funds (ETFs) experienced significant net inflows totaling $378.3 million. The resurgence of interest was noted by Grayscale Bitcoin Trust (GBTC), which saw a positive inflow for the first time in this regard.
As a result, the excitement in the crypto sector is partly due to the general economic situation, which now favors riskier assets such as cryptocurrencies.
A Look at Retail Investors and Altcoins
Due to recent market dynamics, retail investors have mostly stayed out of the markets, especially cryptocurrency markets, even as Bitcoin is about to reach its all-time high (ATH). The return of these investors is expected to occur closer to the post-summer recovery of the altcoin market.
In the past, retail investors returned to the market as lesser-known cryptocurrencies, altcoins, began to rise in value, indicating a possible ripple effect in the crypto market. This pattern also shows that there will still be early birds for those looking to enter the market before broader market participation. Predictions are that there will be a massive influx in altcoin investments after the summer, possibly leading to the start of “altcoin season”.
Additionally, the market cap of altcoins points to a technical formation that could represent a major move in the near future. According to analysts, the formation of an inverted head-and-shoulders pattern in Total Altcoin Market Cap indicates a potential breakout that could increase the market cap to $4 trillion.
As a result, tIts scenario, expected to emerge over the next few months, indicates significant growth potential in the altcoin market, which could once again attract the attention of retail investors.
Also read: Peter Brandt Supports Michael Saylor’s Controversial Bitcoin Is King Statement
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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