Q4 crypto rally fueled by BTC $65K crash ‘very high’ chances
The possibility of a bullish rally in the highly anticipated fourth quarter is strong, according to crypto analyst Bitcoin's return above the $65,000 price level.
“The likelihood of a Q4 rally is extremely high, and earnings are front-loaded,” said 10x head of research Markus Thielen in a Sept. 27 Cointelegraph report.
Altcoin FOMO will return when Bitcoin reaches $65,000
Thielen noted that Bitcoin's (BTC) price crash above $65,000 has “increased” fears of a meltdown or FOMO returning to the altcoin market. Thielen added: “An even higher rally could be on the horizon, triggering even more FOMO in the crypto space.”
According to CoinMarketCap data, at the time of publication, Bitcoin is trading at $65,424.
Bitcoin has gained 3.04% in the past seven days. Source: CoinMarketCap
Capriole Investments' Altcoin Speculation Index rose 23%, marking a 13% increase over the past 30 days. This index tracks the percentage of altcoins over a 90-day period, with higher readings indicating more speculation in the market.
Sei (SEI) led the top 100 cryptocurrencies in the last seven days since September 20th, rising 37.79%. It was followed by Wormhole (W), up 32.83%, and Shiba Inu (SHIB), up 32.08%.
According to Thielen, SHIB has become a popular investment for South Korean retail investors this week.
“Over the past 24 hours, Shiba Inu has regained the top spot in South Korean trading, undermining expectations and setting the stage for a possible Q4 rally.”
Amid the altcoin market surge, Bitcoin's dominance has dipped slightly since September 20, falling from 1.57% to 57.51%, according to TradingView data.
Traders often use this metric to measure potential capital shifts from Bitcoin to altcoins.
Over the last seven days, Bitcoin dominance has decreased by 1.57%. Source: TradingView
Meanwhile, since September 26, the Crypto Fear and Greed Index has increased by 11 points, reaching a “greed” score of 61.
Further price cuts will only increase interest on altcoins
Thielen suggested that high-beta altcoins would gain more momentum if the US Federal Reserve is “open to cutting rates.”
His comments came shortly after the US Federal Reserve's September 18 decision to cut interest rates by 50 basis points, an indicator of riskier assets. Falling interest rates make traditional investments like bonds and term deposits less attractive to investors.
Related: Bitcoin poised for rally as FTX payout looms and Fed shift shifts
Several crypto analysts have hinted on social media that this is the start of an altcoin bull run, predicting further gains in the future.
“Altcoins are gaining momentum, but that's nothing compared to what we'll see in the next 6 months,” MN Trading founder Michael Van de Pop said in a post on September 27.
“It will be an honor. It already is,” Van de Pop added.
Meanwhile, on the same day, Joe McCann noted that “90% of all altcoins on Binance are above their 50-day moving average.”
“Altcoins are about to break out of a multi-month downtrend,” added crypto analyst Miles Docher.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
