The recent drop in Bitcoin's (BTC) price below $113,000 has put pressure on the altcoin market as a whole. There are significant concerns about a larger cryptocurrency correction, fueled by ambiguous inflation data and the anticipation of Fed Chairman Jerome Powell's upcoming speech at the Jackson Hole symposium.
On Thursday, the number of unemployment benefit claims in the U.S. for the week ending August 16 was 235,000, slightly above expectations. Despite this, Kalshi market data shows that after the latest CPI report, traders assess the probability of a 25 basis point Fed rate cut in September at 60%. This is a significant increase that contradicts recent market concerns.
Meanwhile, Kashi traders are making more bets that the Fed will keep rates in the range of 4.25% to 4.5%, with the odds rising from 23% to about 37% over the past three days.
Source: Kalshi
Why it's worth betting on Altseason 2025 soon
The 2025 altcoin season signals a parabolic rally that will soon be supported by renewed demand from institutional investors. After the price of Ethereum (ETH) broke through a multi-week resistance range between $3.8k and $4.1k, several altcoins, primarily Binance Coin (BNB) and Chainlink (LINK), have signaled macroeconomic growth.
Source: CoinGlass
According to market data analysis from CoinGlass, the altcoin season index has gradually risen to 51%, indicating a significant departure from the bullish market dominated by Bitcoin.
Moreover, Bitcoin's dominance has become a signal of a macro market reversal after closing below the 50-week simple moving average (SMA) for the past three weeks.
Source: TradingView
Additionally, Bitcoin's dominance closed below the established weekly upward logarithmic trend amid renewed demand for altcoins from institutional investors.
Key factors that will trigger parabolic growth
The 2025 altcoin season will be triggered by several key events, particularly in the U.S. First and foremost, this is a potential Fed rate cut if President Donald Trump is able to sway the majority of the Federal Reserve Board of Governors.
According to Altcoin Buzz, the upcoming vote on the Transparency Act will be a turning point for the entire cryptocurrency market. The Transparency Act will strengthen the recently passed GENIUS Act, further impacting the mass adoption of digital assets by institutional investors.
The largest altcoins expected to benefit from the Clarity Act include Ethereum, Solana (SOL), Cardano (ADA), and Algorand (ALGO)
