The Federal Reserve didn't cut interest rates, but that's not stopping the altcoin market. Here's why [1]:
- *Global Liquidity Matters*: Crypto is a global asset class, and global M2 (money supply) is a key driver. China, the EU, and the UK are already cutting rates, increasing global liquidity.
- *$USDT Market Cap Rising*: The growing USDT market cap indicates increasing risk appetite, which can fuel the crypto market.
- *Altcoin Seasons*: Altcoin seasons are driven by confidence and rotation, not just macro conditions. When Bitcoin breaks new highs, it can reignite belief and trigger rotation into riskier assets.
Key points:
- *ISM Manufacturing*: A reading above 50 signals business cycle expansion, which is bullish for risk assets, including altcoins.
- *Global Liquidity*: Increasing global liquidity, not just Fed policy, drives crypto markets.
- *Risk Appetite*: Returning risk appetite and Bitcoin's leadership are key to altcoin growth.
The article concludes that the Fed's decision is less important than global liquidity trends and market psychology. As long as global liquidity is trending up, Bitcoin is leading, and risk appetite is returning, altcoins can thrive.
