While the altcoin season may not be here yet, analysts say it will be here soon. The US Federal Reserve’s decision to cut interest rates by 50 basis points has sent investors flocking to riskier assets, fueling expectations of an altcoin season.

According to Mason Jappa, CEO of Blockware, the medium- and long-term outlook for cryptocurrencies remains optimistic, as low interest rates support risk assets like Bitcoin.

“If Powell is dovish, crypto will rally in the short term,” he said, which has been happening with widespread optimism and a trend toward risk assets.

Altcoins have seen a surge in interest, with strong inflows into the market, pushing the market capitalization up by $22 billion in the past 24 hours, according to Coingecko.

Anonymous analyst Mustache believes that traders are not really bullish on altcoins and predicts an altcoin season that will last until 2025.

Altcoin Season Has Begun?

Despite altcoins' recent growth, on-chain data shows they still have room to grow before entering a strong growth season.

Coincodex says Bitcoin dominance has only dropped slightly by 0.6% since the Fed's decision. Despite the shift, Bitcoin still holds a large lead.

Blockchaincenter.net's Altcoin Season Index is currently at 45, far from the 75 level that signals an official altcoin season.

Over the past 90 days, only a handful of altcoins have outperformed Bitcoin, with the majority still losing money. For an altcoin season to occur, at least 75% of altcoins need to outperform Bitcoin, but currently only close to 50% have done so.

Altcoin season forecast to kick off in the next 2 quarters

Analyst Nilesh Rohilla pointed out a bearish breakout pattern on the altcoin capitalization chart, predicting that Bitcoin will be the stepping stone for altcoins to explode, creating high profit opportunities.

Many other analysts agree, saying that the end of this year could be the time for Bitcoin to explode, with a six-figure price “still possible” by 2025. This aligns with a key upcoming event: the US presidential election, which is expected to produce new highs regardless of the election outcome.

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