Altcoin Season Delayed Until Fed Cuts Interest Rates

The long-awaited altcoin season might not be here just yet, but there’s growing confidence that it’s only a matter of time. According to a financial analyst, recent updates from the U.S. Federal Reserve are setting the stage for what could be a major move in the crypto market, just not immediately.

 In fact, this “quiet time” could be the best chance to prepare before altcoins finally take off.

Fed Keeps Rates Unchanged

The U.S. Federal Reserve has decided not to cut interest rates — again. This is the fourth straight time they’ve paused, keeping rates at 4.25%–4.50%. The reason? Inflation is still too high. Core inflation is sitting at 2.8%, while the Fed wants it closer to 2%.

That means no fresh money is being pumped into the market right now. And without that, altcoins often struggle to rise in a big way.

Big altcoin rallies usually need extra liquidity, cheap money, lower interest rates, or stimulus to really explode.

Altcoins in Accumulation Phase

Right now, the altcoin market is in what experts call the “accumulation phase.” Prices are not crashing, but they’re not soaring either. Many coins are just moving sideways. It’s a quiet zone, and that’s when smart investors usually build their positions.

Altcoins need two things to spark a full-blown rally:

• A drop in Bitcoin dominance (which is still strong above $100k)
• A return of market liquidity (which comes with rate cuts or printing more money)

Until then, altcoins will mostly move based on their individual projects, news, and development progress.

Altcoin Season isn’t Cancelled — Just delayed!

One of the biggest triggers will be the U.S. Federal Reserve finally cutting interest rates. That could happen later this year. When it does, it will unlock more money and liquidity into the market. 

And that’s exactly when altcoins are expected to take off in a big way.

Adding to this excitement, the Altcoin Index has just confirmed entry into the famous 4-Year Cycle Zone, the same pattern that led to massive altcoin rallies in both 2017 and 2021. This signals that altcoins may soon be ready for another explosive run.