The recent drop in Bitcoin price below $113,000 has put pressure on the altcoin market as a whole. Apparent fears of a broader cryptocurrency correction still linger, stirred by mixed inflation data and expectations for the upcoming speech by Fed Chairman Jerome Powell at the Jackson Hole Symposium.
On Thursday, the number of unemployment claims in the U.S. for the week ending August 16 was reported at 235,000, slightly higher than expected. However, data from the Kalshi prediction market shows that after the latest CPI report, traders are anticipating a 60% chance that the Fed will cut interest rates by 25 basis points in September, a significant increase, contrary to recent market concerns.
Meanwhile, Kashi traders have bet more on the Fed maintaining interest rates between 4.25% and 4.5%, with the odds increasing from 23% to about 37% over the past three days.
Why You Should Bet on Altseason 2025 Early?
The altcoin season of 2025 has signaled an early parabolic price increase driven by new demand from institutional investors. Since Ethereum (ETH) price recovered above the multi-week resistance level of $3,800 to $4,100, several altcoins – led by Binance Coin (BNB) and Chainlink (LINK) – have indicated macro bullish sentiment.
According to market data analysis from CoinGlass, the Altcoin Season Index has gradually risen to 51%, signaling a major shift from a Bitcoin-dominated bull market.
Furthermore, Bitcoin's dominance has signaled a reversal in the macro market after closing below the 50-week Simple Moving Average (SMA) for three consecutive weeks.
Additionally, Bitcoin's dominance has closed below the established weekly logarithmic uptrend amid renewed demand for altcoins from institutional investors.
Key Factors That Will Trigger a Parabolic Price Increase
The altcoin season of 2025 will be triggered by several key events, especially in the United States. At the top of the list is the possibility that the Federal Reserve (Fed) will cut interest rates if President Donald Trump succeeds in influencing the majority of the Federal Reserve Board of Governors.
According to Altcoin Buzz, the upcoming vote on the Clarity Act will be a pivotal moment for the cryptocurrency market as a whole. The Clarity Act will reinforce the recently enacted GENIUS Act, thereby having a broader impact on how institutional investors adopt digital assets widely.
