Russian experts are predicting that an altseason may return later this year, bringing new momentum to the altcoin market. VG GROUP Managing Partner Vagiz Nurullov noted that the summer is typically a slow period for trading, especially in cryptocurrencies. However, as summer ends, the market is expected to become more active, with an increase in open interest and a rise in overall market value. Russian analysts believe that much depends on Bitcoin prices, stating that BTC needs to consolidate above $65,200 to confirm a change in trends from bearish to bullish.
Oleg Kalmanovich, an analyst at Neomarkets, also agreed that global factors like the Federal Reserve’s interest rate cuts play a significant role in the market. He explained that rate cuts often lead to increased interest in risky assets like cryptocurrencies. Large amounts of capital are expected to move from lower-rate dollar deposits to assets like altcoins, as further rate cuts are anticipated in the near future. Experts are closely watching upcoming data on the US labor market and the presidential election for potential market impacts.
While experts are optimistic about the potential growth in altcoins, they also urge caution to investors. Vagiz Nurullov warned that the upcoming altseason may not resemble previous ones, as the market now includes a vast array of new crypto projects. The experts suggest that an initial wave of growth may occur by early November, with a possible second wave in March, depending on the outcome of the US elections. Analysts like Moustache have also predicted that this upcoming altseason could be the biggest altcoin bull run since 2017, indicating significant potential for growth.
Kalmanovich highlighted specific assets like NEAR, XRP, and Polkadot as potential candidates for growth during the altseason. These tokens have lagged behind in price compared to others since the beginning of the year, providing an opportunity for them to catch up using the lower rates in Western economies as fuel. Overall, experts believe that the market is at a stage where various positive factors are aligning to push asset prices upwards. These factors include upcoming FTX investor repayments, the Federal Reserve’s interest rate cuts, the US elections, and the seasonality of the crypto market.
In conclusion, while the altseason may provide opportunities for growth in altcoins, investors are advised to approach with caution due to the current market dynamics. Factors like Bitcoin prices, global economic events, and the US elections will play a significant role in shaping the direction of the market in the coming months. As the market continues to evolve with new projects and innovations, analysts are keeping a close eye on potential trends and developments that could impact altcoin prices. Overall, the market appears to be entering a more active phase, with the potential for significant growth in the altcoin space.
