Altcoin Rally Likely by Year-End: Analysis
CryptoNewsTerminal Staff03 Sep, 2024
Altcoin Rally Likely by Year-End: Analysis
Altcoins are highly likely to rally by the end of the year, according to an analysis by Cointelegraph. This is due to a number of factors, including: - Seasonal patterns: Altcoins tend to follow a seasonal pattern, with LINK being a prime example. LINK tends to be bearish in the first half of the year when it is priced in BTC and bullish in the second half. In the first halves of 2022, 2023, and 2024, LINK fell by over 60%, while in the second halves of 2022 and 2023, it surged by over 120%. - Chinese liquidity injections: Chinese liquidity tends to expand and contract in six-month cycles, and it usually expands towards the end of the year. The most recent expansion occurred between September 2023 and February 2024, during which altcoins rallied. Currently, China is in the middle of quantitative easing. - Federal Reserve interest rate cuts: The Federal Reserve is expected to start cutting interest rates from September onwards. This is likely to lead to a rally in altcoins, as lower interest rates make it less attractive to hold fiat currencies. Overall, the outlook for altcoins is positive for the second half of the year. Investors should consider adding altcoins to their portfolios to take advantage of this potential rally.
