Bitcoin’s bullish break above $65K has ignited FOMO in the altcoin market as altseason anticipation rises, according to 10x Research CEO Markus Thielen.
In a September 26th 10x market update, Thielen maintained a bullish outlook for altcoins, citing Bitcoin’s recent break above the stubborn resistance threshold at $65,000 as a prelude to the “next wave.”
Thielen opined that Bitcoin’s breakout above $65,000 has “fuelled” FOMO returning to the altcoin market. “A major surge could be on the horizon, sparking even more FOMO across the crypto space,” he added.
A scenario he forecasts to unfold quickly, setting a Bitcoin target of $70,000 in the next two weeks, with “all-time highs by late October.”
This focus on altcoins is underscored by notable shifts in market dynamics. Bitcoin’s dominance has waned, down 1.57% to 57.51%, according to TradingView data. Meanwhile, Ethereum gas fees have spiked, fueled by a surge in altcoin activity across the ecosystem.
Bitcoin dominance & Ethereum gas fees since Fed rate cut. Source: 10x Research.Analysts have interpreted this as a sign that Bitcoin’s dominance is peaking. Investors appear to be selling BTC and rotating their capital into alternative coins, indicating that “altcoins are likely the focus for now.”
What’s Pushing the ‘Next Wave’ For Altcoins?
Thielen suggested that if the US Federal Reserve “remains open to cutting rates,” high-beta altcoins will likely gain further momentum.
His comments come shortly after the Fed’s September 18th decision to cut rates by 50 basis points, a bullish indicator for riskier assets. Declining interest rates make traditional investments like bonds and term deposits less appealing to investors.
Something made credible by the Fed’s dovish dot plot, which showed that the median Fed policymaker expects a further 150 basis points in rate cuts by the end of 2025.
Meanwhile, retail crypto trading activity in South Korea supports this trend, with daily trading volumes now hovering around $2 billion. Shiba Inu has reclaimed the top spot in trading volume in South Korea, signaling “rising speculation and setting the stage for a potential Q4 rally.”
The recently announced People’s Bank of China (PBOC) stimulus package also sets grounds for optimism. Timed just as the Fed begins cutting rates, it could trigger significant capital outflows from China into the cryptocurrency market.
Thielen speculated that the $278 billion Chinese stimulus plan could “ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity.”
In 2013, Chinese exporters used over-invoicing to funnel billions into Bitcoin, triggering a massive rally—a scenario Thielen can see recurring.
Altseason Isn’t Here Yet, According to Metrics
The analyst summarized his analysis by saying “the likelihood of a Q4 rally is exceptionally high” as catalysts continue to stack in the market’s favor, particularly for altcoins—something analysts have cited with the potential to spark the “biggest” altseason since 2017.
However, it’s not yet time to celebrate, as the altcoin season index by Blockchain Center indicates that “it is not altcoin season.” According to this index, it is considered altcoin season if 75% of the top 50 coins have outperformed Bitcoin over the last 90 days.
This score is steadily increasing, though. Currently, 41% of the top 50 coins have outperformed Bitcoin, approaching a recovery of the levels seen immediately after the Fed rate cut, which peaked at 46%.
Altcoin season index. Source: Blockchain CenterTherefore, while optimism is high and catalysts are aligning, caution remains as the market waits for a more decisive shift in altcoin performance.
Meanwhile, we remain in an accumulation zone as we approach this critical juncture. This presents a valuable opportunity for investors to reaffirm their positions in the most promising altcoins leading into the anticipated altseason.
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