Bitcoin Dominance Persists as Market Corrects
The altcoin sector continues to trail behind Bitcoin (BTC), which holds a dominant market position. As of Wednesday, Bitcoin’s dominance was at 56.20 percent, with its price dipping below $66k once again.
Interest Rate Moves Could Impact Crypto Market?
The recent decision by the Bank of Japan (BoJ) to increase its policy rate by 25 basis points, combined with the US Federal Reserve expected to maintain its rate at 5.50 percent, may lead to further corrections in the crypto market, led by Bitcoin and Ethereum (ETH).
Historical Trends and Future Predictions
Historical data indicates that August is typically not a bullish month for the crypto industry, especially during halving years. However, according to well-known crypto analyst Benjamin Cowen, the altcoin market may hit bottom in August and potentially start to rebound in September, driven by a possible rate cut from the US Fed.
Market intelligence from Santiment presents mixed signals for an upcoming altseason. Ethereum (ETH) experienced a significant two-month high exchange outflow of over 80k units, while Tether (USDT) saw a bearish five-month high exchange outflow of approximately $346 million, indicating a potential decline in overall purchasing power.
Benjamin Cowen, a popular crypto analyst, suggests that the altcoin market could bottom out in August and possibly start rebounding in September. This prediction is based on the likelihood that the US Federal Reserve might reduce its benchmark rate in September. Meanwhile, Santiment’s market intelligence offers a mixed outlook for altseason. Ethereum has seen a significant exchange outflow, with over 80k units leaving exchanges. This trend suggests that investors might be preparing for an upcoming rally. Conversely, Tether (USDT) registered a five-month high exchange outflow of about $346 million, a signal that could imply a decrease in overall purchasing power.
Top Altcoins to Watch
Several altcoins are showing signs of a potential bullish breakout as the anticipated altseason approaches. Ripple-backed XRP is decoupling from the broader crypto market, displaying a recent bullish trend. Additionally, popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have been accumulating over the past five months, suggesting a bullish breakout may be imminent.
Furthermore, leading layer-one projects such as Solana (SOL) and Cardano (ADA) have gained regulatory clarity in the United States after the SEC dropped its investigation into securities law violations. This development could provide the necessary boost for these altcoins to perform well in the upcoming months.
In summary, while the crypto market continues to experience fluctuations, certain altcoins are poised for significant growth. Investors should keep an eye on XRP, DOGE, and SHIB, as well as other promising projects like SOL and ADA, as they navigate the evolving landscape of the crypto industry.
