The recent Federal Reserve FOMC meeting has caused a stir in the cryptocurrency markets, leading to significant drops in many altcoins following Jerome Powell’s speech. In the past 24 hours, numerous coins have been hit hard by the market shifts.
According to analyst Miles Deutscher, while these changes may impact the short-term trajectory of the market, they do not change the overall bullish outlook for the long term. Currently, Bitcoin’s dominance is on the rise, but there are signs of a potential lower high forming, indicating a possible dip for Bitcoin before altcoins start to rally.
In the past, after a correction in Bitcoin, altcoins have tended to follow suit and experience substantial growth. This suggests a potential altcoin rally towards the end of January, as market patterns typically align with these cycles.
During market dips, many new retail investors tend to panic, especially when it comes to holding coins like XRP or DOGE. However, Deutscher advises that while some may fear that the bull market is over, it is essential to note that most bear markets do not begin with a 15-20% correction. Instead, dips like these often present excellent buying opportunities and can be the ideal time to position oneself for future gains.
Crypto analyst Lark Davis also sees big potential in the altcoin market, predicting a significant rally. With the total market cap of altcoins (excluding Bitcoin and Ethereum) hovering around $1.05 trillion on December 18, close to the November 2021 high, Davis believes that once the market cap surpasses $1.13 trillion, we could witness one of the most significant altcoin seasons ever.
Davis highlights various factors driving this potential growth, including Bitcoin reaching new all-time highs, Trump soon taking office, global rate cuts, and increased money flowing into the market. With these conditions in place, Davis warns that those who are not currently involved in the market may miss out on significant gains during the upcoming altcoin rally.
As we navigate through these market fluctuations, it’s essential to stay informed and make strategic decisions to capitalize on the potential opportunities that lie ahead. The cryptocurrency market is dynamic and ever-changing, presenting both risks and rewards for investors. Stay tuned for more updates as the market continues to evolve.