LONDON (IT BOLTWISE) – The Fed’s recent 25 basis point interest rate cut has sent the crypto market into turmoil. As Bitcoin fell to $109,000, many are expecting a new altcoin season. But experts warn that this could be the start of a market reversal rather than an altcoin rally.
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The US Federal Reserve’s recent decision to cut interest rates by 25 basis points has sent financial markets into flux. There is speculation, particularly in the crypto sector, as to whether this could herald the start of a new altcoin season. But a closer look at the market data shows that the situation is more complex. Bitcoin, considered a barometer for the entire crypto market, fell to around $109,000 immediately after the announcement. This suggests that markets had already priced in the rate cut.
A key point is the end of quantitative tightening in December, signaling a return of liquidity to the markets. Historically, such phases have often led to strong price increases, but the current market situation is different. As Bitcoin continues to gain strength, many altcoins, including heavyweights like Ethereum, Solana and XRP, are struggling to reach their 2021 highs. This development suggests that we are in a phase of market reversal rather than a new altcoin season.
For Solana and XRP, this means they could be in a healthy cooling phase. Futures open interest data on CME Group shows a record high of around $3 billion for both cryptocurrencies. Solana is moving within a key support and resistance area, indicating an accumulation zone. If this area is broken, a rise to the $210-$225 range could be possible. XRP is currently testing key support at $2.60. If this area fails to hold, a short-term decline to $2.40 could follow, but without jeopardizing the long-term bullish setup.
Interestingly, the current market situation could also present an opportunity for meme coins like Maxi Doge. As major cryptocurrencies lose momentum, meme coins could benefit from the return of liquidity. Positioning itself as the next big meme coin, Maxi Doge has already raised over $3.81 million in the presale phase. With strong community growth and attractive staking rewards, Maxi Doge could take a leading role in the coming market phase.
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