The likelihood of a bullish rally in the anticipated fourth quarter appears strong following Bitcoin’s resurgence above the $65,000 price threshold. A report from the head of research at 10x Research noted that gains are expected to be front-loaded.

Altcoin Enthusiasm Revived with Bitcoin’s Surge

The analyst suggested that Bitcoin’s (BTC) breakout above $65,000 has reignited fear of missing out (FOMO) among altcoin investors. He emphasized that a significant price increase could be imminent, potentially amplifying FOMO across the cryptocurrency landscape.

As of the latest update, Bitcoin is trading at approximately $65,424, based on CoinMarketCap data.

Bitcoin has increased by 3.04% over the past week.

Additionally, the Altcoin Speculation Index from Capriole Investments has risen to 23%, indicating a 13% increase over the last 30 days. This index measures the percentage of altcoins that are outperforming Bitcoin over a 90-day period, with higher values reflecting growing market speculation.

Sei (SEI) has been notably bullish, leading the top 100 cryptocurrencies with a remarkable 37.79% gain over the last week. Other high performers include Wormhole (W) with a 32.83% rise, and Shiba Inu (SHIB) up by 32.08%.

Shiba Inu has gained traction among retail investors in South Korea, according to analyst observations:

“In the past 24 hours, Shiba Inu has surged to the top of trading volume in South Korea, indicating increased speculation and setting the groundwork for a potential Q4 rally.”

Simultaneously, Bitcoin’s market dominance has slightly declined since September 20, dropping about 1.57% to 57.51%, as reported by TradingView. This metric is frequently referenced to assess possible capital migration from Bitcoin into altcoins.

Bitcoin’s dominance is down 1.57% over the past week.

Furthermore, the Crypto Fear & Greed Index has ticked up by 11 points since September 26, now indicating a “Greed” score of 61.

Potential Rate Cuts May Further Boost Altcoin Interest

The analyst indicated that if the US Federal Reserve continues to consider rate cuts, it may provide additional momentum for high-beta altcoins.

This commentary follows the Federal Reserve’s recent move to cut interest rates by 50 basis points—a potentially bullish sign for riskier assets, as lower interest rates diminish the appeal of traditional investments like bonds.

Several analysts have suggested on social media that we might only be witnessing the early stages of an altcoin bull run, forecasting even greater gains ahead.

“Altcoins are noticeably gaining steam, but this is only the beginning of what’s to come in the next six months,” stated a crypto influencer.

Another analyst pointed out that “90% of altcoins on Binance are above their 50-day moving averages,” indicating a potential breakout from a prolonged downtrend.

In summary, tracking maneuvers in the altcoin market is essential as Bitcoin’s pricing fluctuations and broader economic conditions play significant roles in market dynamics.