Financial markets are closely watching the US Federal Reserve's upcoming decisions, signaling a big change in the cryptocurrency world. The current situation, influenced by technical indicators and liquidity shifts, suggests a potential rise in altcoins. With hopes of lower interest rates and the start of an "altcoin season," this time could be essential for investors seeking opportunities. Projects such as Optimism, ASI, and Notcoin are emerging as important ones to monitor.
A dimly lit room features a computer screen filled with financial data. An excited crypto investor raises their arms in joy. Charts on the screen indicate soaring altcoins.
Expected rate cuts could be a key factor. On December 18, the US Federal Reserve, under Jerome Powell, might announce a reduction in interest rates. This decision is highly awaited by financial markets, especially as liquidity returns to support risky assets like cryptocurrencies. Crypto analyst Jonathan Nowak mentioned in a YouTube video that lower rates would be very beneficial for the markets, estimating a 74% chance of this happening.
Recent employment data released on December 15 will also play a crucial role. The unemployment rate saw a slight rise, reaching 7.145 million in November, an increase of 161,000 from the previous month. This suggests a slight slowdown in the US job market, which may prompt the Fed to act quickly to stabilize the economy.
The start of the altcoin season is evident, with the Total 3 indicator—reflecting the market cap of altcoins excluding Bitcoin, Ethereum, and stablecoins—showing an upward breakout in a "bull flag" pattern. This technical setup has an 80% chance of leading to new highs, highlighting the potential for altcoins this December.
Bitcoin's dominance is weakening, historically indicating a shift of value toward altcoins. The growing volumes and increasing liquidity, especially through USDT, confirm the rise of altcoins. The market cap of USDT has been steadily increasing for 30 days, indicating that investors are gearing up for altcoin investments.
Some altcoins are gaining notice for their growth potential. Optimism (OP) is linked to Ethereum's layer 2 technology and has crossed significant technical thresholds. After stabilizing around $1.40, OP surged to $2.62. However, Nowak advises caution and suggests waiting for market stabilization. He warns that investing after such a surge can be risky; it’s better to buy during a consolidation phase.
The Artificial Superintelligence Alliance (ASI), formed from Fetch.ai and other AI projects, also shows promise. At approximately $3.40, ASI is near its historical levels and is consolidating. Strong support appears to offer security for investors, but experts caution about its high valuation, emphasizing a careful approach.
Notcoin (NOT) stands out as an undervalued option, ranked 116th by market cap. It is seen as having high growth potential since it has yet to see a significant price increase. Nowak notes that Notcoin has not yet “exploded” in price or market cap, making it an attractive choice for those willing to take calculated risks. However, its volatility means investors should be cautious.