Fed Rate-Cuts and Liquidity Rotation Delay Altcoin Season
Crypto analysts foresee a delayed altcoin season driven by Fed rate cuts and liquidity rotation later this year. Analyst Ash Crypto predicts a parabolic pump for BTC, ETH and altcoins once liquidity returns, while Crypto GEMs highlights how past Fed liquidity injections marked the start of altcoin seasons. Over 150 altcoin ETFs are pending SEC approval, offering an additional catalyst for market flow. Despite these drivers, altcoin season indicators remain at bear-market lows: Blockchain Center 35/100, CoinMarketCap 24/100, CryptoRank 24/100 and BitGet 30/100 signal a continued Bitcoin season. Only a few tokens such as BNB, SOL, HYPE, ZEC and WLFI have outperformed recently, while most altcoins trade near multi-year lows amid geopolitical tensions. Traders should watch Fed policy, liquidity shifts and ETF approvals for clearer signals of an altcoin season.
Neutral
Short-term, the news underscores persistent bear-market lows in altcoin season indicators, suggesting muted momentum and limited upside until key thresholds are broken. Ongoing geopolitical tensions and tariff concerns further suppress risk appetite. However, long-term prospects remain cautiously optimistic. Anticipated Fed rate cuts, liquidity rotation back into risk assets and the pending approval of over 150 altcoin ETFs could unlock a substantial altcoin rally once conditions align. This balanced outlook yields a neutral impact, with traders advised to wait for clearer signals before increasing exposure.