As a crypto investor with some experience under my belt, I have learned to be patient and not let FOMO drive my investment decisions. After the intense hype around the possible altseason and the expectation of a mega rally in the altcoin market, it’s relieving to see that the FOMO has finally cooled down.
As an analyst, I’ve noticed that the excitement surrounding a potential altcoin season and the anticipation of a significant rally in the altcoin market has simmered down somewhat. Over the past week, many altcoins have experienced corrections of around 10-20%, with only a few exceptions like Ethereum managing to hold their ground.
Altseason FOMO cools Down Suggesting Market Bottom
As a researcher studying market trends using on-chain data from Santiment, I’ve noticed an intriguing pattern in the altcoin sector. Whenever there’s a significant increase in discussions about “altseason” – a term used to describe a perceived uptrend in altcoins – it often occurs around market peaks and tops. This observation implies that traders may be growing excessively greedy, leading them to intensely focus on altcoins, potentially signaling an impending market top.
After the stock market reached its peak in March, the anxiety among investors about missing out on potential gains has noticeably decreased, according to Santiment’s data. This decrease in FOMO may indicate that we are approaching a market low, which could present a substantial buying opportunity for investors.
According to Santiment’s findings, there has been a noticeable decrease in public enthusiasm for large-cap cryptocurrencies such as Shiba Inu (SHIB), Dogecoin (DOGE), and XRP, following recent price drops. Santiment suggests that this sentiment swing could potentially be an attractive buying prospect for astute investors willing to wait it out.
With fear of missing out (FOMO) at its lowest point in 2024, hesitant investors may now want to think about investing newly available funds into the market.
Done Expect Imminent Altcoin Bull Run
As a researcher studying the cryptocurrency market, I’ve observed that despite Bitcoin reaching close to its record-high prices, most alternative coins (altcoins) have remained below their previous peak values. Noted crypto analyst Benjamin Cowen shares my perspective, warning against the assumption of an immediate altcoin bull run.
He also mentioned that a substantial price increase for altcoins is improbable until the US Federal Reserve initiates another round of interest rate reductions. Traditionally, altcoins have yielded impressive gains post-Fed rate decreases. According to Cowen:
The downturn in most alternative coins is reflected in the dropping difference between advancing and declining altcoins, resembling the trend preceding the Federal Reserve’s rate reduction in 2019. This index experienced a significant decrease prior to the Fed announcing rate cuts in July of that year. Keeping an eye on these trends is crucial as expectations for an altcoin rally surpassing Bitcoin may be premature without the Fed lowering interest rates.
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2024-06-18 12:01