🌏 Macroeconomic factors impacting altcoin
Monetary policy: Many major financial institutions (Goldman Sachs, Wells Fargo, Citigroup) predict the Fed will cut interest rates by a total of 75 basis points by the end of 2025. This typically increases risk appetite, stimulating capital flows into assets like cryptocurrencies.
Liquidity & risk sentiment: Previously high interest rates have reduced capital flows into altcoins. Expectations of policy easing are paving the way for capital to return to the market.
Bitcoin dominance: BTC still accounts for over 60% of the market capitalization, limiting the broad breakout of altcoins. Only when BTC dominance decreases can altcoins have the opportunity for strong growth.
📰 Prominent altcoin market news
High volatility & large liquidations: In the last 24 hours, over 270 million USD in positions were liquidated as expectations for the Fed to cut interest rates were adjusted.
Selective capital flows: Capital is concentrated in projects with high liquidity, strong fundamentals, and real-world applications like Cardano (ADA), TRX, FLOKI.
Tether expands in the US: The world's largest stablecoin issuer is increasing its presence, which may impact market liquidity.
Whale activity: Large buy/sell transactions in tokens like $SHIB , $ETH indicate a restructuring of a large investor's portfolio.