According to CoinWorld News:
The decline in Bitcoin’s dominance often heralds the beginning of an altcoin season. Based on past trends, significant volatility typically occurs around six months after a Bitcoin halving event. Within a year post-halving, we may even witness a new historical high, possibly in 2025.
Reasons Why 2024-2025 May Be a Turning Point
As we look ahead to 2024 and 2025, many signs indicate that this could finally be the moment we have been waiting for. One reason is that events in the past year have laid the groundwork for a potential market boom. For instance, Ripple (XRP) has made significant progress in its legal battle with the SEC. When Ripple initiated its lawsuit against the SEC, it marked the beginning of a downturn in the crypto market. The SEC’s actions appeared to dampen enthusiasm for cryptocurrencies, especially in 2023.
This Week’s Overall Cryptocurrency Market Shows a Rebound
Bitcoin: This week, Bitcoin exhibited an upward trend. Following the Federal Reserve’s announcement of a 50 basis point rate cut, the subsequent dot plot indicated that the median expectation for the Fed’s rate at the end of 2024 is between 4.25% and 4.50%, suggesting that the next two meetings will also see a 50 basis point cut, exceeding market expectations.
Ethereum: This week, Ethereum’s performance lagged behind that of Bitcoin, with its rebound being weaker than the overall market. This is primarily due to Vitalik’s speech at the Token2049 conference, where he did not address Ethereum’s future development roadmap or substantive construction plans, leading to continued pessimism regarding Ethereum’s future and resulting in a decline in the ETH/BTC exchange rate. Recent market sentiment toward Ethereum has reached a peak of pessimism, with funds shifting from the Ethereum chain to various other public chains, causing Ethereum’s price to remain weak.
Upcoming Major Events
Tuesday (September 24): Super Return Asia 2024
Friday (September 27): U.S. August Core PCE Price Index Year-on-Year; U.S. September University of Michigan Consumer Sentiment Index Final
Sunday (September 29): CZ to be released from prison
Overall Performance
This week, the market sentiment index has rapidly recovered, rising to 87%, a significant increase from last week’s 65.5%. The Federal Reserve’s announcement of interest rate cuts this week has boosted market sentiment, leading to further rebounds in various token prices and shifting market sentiment from greed to extreme greed.
Recommended Potential Coins to Consider
Below are some coins that I believe are worth considering. If you have specific coin recommendations as well, feel free to add them. If you are unsure about entry and exit points, you can contact me for assistance.
UXLINK: This week, UXLINK was listed on the South Korean exchange Upbit and launched futures trading with a 75x leverage on Binance. Its trading volume surged significantly after being listed on Upbit, briefly capturing the top trading volume on the platform.
REEF: This week, the Reef project team did not announce any major positive news apart from routine development and communication efforts. Notably, REEF experienced negative trading fees on Binance’s futures market, reaching as high as -1%.
CKB: Last Friday, Nervos Network was listed on the South Korean exchange Upbit, with significant price discrepancies observed across various exchanges on the listing day, where Upbit saw a peak increase of 360%. This week, CKB continued its previous momentum and presented at Token2049, during which the CKB Lightning Network, Fiber Network, completed its beta testing, garnering attention and traffic.
The gains of the top three tokens this week were significantly higher than last week, indicating that after the Fed’s unexpected rate cuts, the market is not anticipating an economic downturn, but rather regaining confidence in future growth.
Outlook for Next Week
Bitcoin: BTC also rose this week due to the positive impact of the Fed’s rate cuts. As we enter a rate-cutting cycle, asset prices are expected to rise alongside increased market liquidity, although time is needed to release sufficient liquidity into the market. Therefore, BTC is expected to experience a brief correction after this week’s increase, followed by a period of consolidation.
Ethereum: Recent market pessimism toward Ethereum has peaked, with funds moving from the Ethereum chain to various other public chains, posing significant challenges for Ethereum’s ecosystem development. It is anticipated that ETH’s performance will lag behind BTC in the future, with the ETH/BTC exchange rate continuing to decline.
Conclusion
The Federal Reserve’s announcement of interest rate cuts has provided a significant boost to BTC prices. However, this does not imply that there are no obstacles to achieving new heights. Concerns about an economic recession in the U.S. remain, which could lead to challenges in the job market. If the U.S. economy does progress favorably, the outlook will appear more optimistic. Understanding this in the coming days will be crucial
