Markus Thielen, founder and head of research at digital asset research agency 10x Research, believes that with Bitcoin regaining its price of $65,000, the possibility of a rebound in the much-anticipated fourth quarter of the cryptocurrency market is very high, and the gains may be will be realized in advance.
In a report published on Thursday, Thielen said that FOMO sentiment has returned to the altcoins market, fueled by Bitcoin's breakthrough of $65,000, and "a major rally may be coming, which will cause turmoil in the entire cryptocurrency field." Greater FOMO".
Bitcoin was trading around $65,800 at press time. Capriole Investments’ altcoin speculation index has climbed to 23%, up 13% over the past 30 days. The index tracks the proportion of altcoins that have outperformed Bitcoin over the past 90 days, with higher numbers indicating increased speculation in the market.
Capriole Altcoin Speculation Index value changes from January 2018 to present (Source: Capriole Investments)
The prices of many altcoins have experienced significant increases since September 20. Data from CoinMarketCap shows that among the top 100 currencies by market capitalization, the currency that has risen the most in the past seven days is W, the native token of the cross-chain messaging protocol Wormhole. , with an increase of more than 35%, followed by the meme coin Shiba Inu (Shiba Inu Coin, SHIB), which ranked second, with an increase of more than 35%. Ranking third is SEI, the native token of Layer1 blockchain Sei, with an increase of about 33%.
Source: CoinMarketCap
Thielen said Shiba Inu Coin has become a popular investment option among South Korean retail investors this week, saying:
“Shiba Inu has regained the No. 1 spot by trading volume in South Korea over the past 24 hours, signaling rising speculation and setting the stage for a potential fourth-quarter rebound.”
As the altcoin market rebounds, Bitcoin’s market capitalization share has declined slightly, falling from a local high of 58.5% on September 19 to the current 57.5%, a drop of approximately 1.7%. This data is often used by traders to gauge potential fund flows from Bitcoin to altcoins. At the same time, the Bitcoin Fear and Greed Index returned to the "greedy" zone today, with a value of 61.
Source: 10x Research
10x Research’s Thielen said high-beta altcoins could gain further momentum if the U.S. Federal Reserve “remains open to rate cuts.” Additionally, he believes China’s $278 billion stimulus package could trigger a parabolic rally in cryptocurrency prices, driven by increased global liquidity.
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