FOMO is Over in Those 3 Altcoins: Is the Floor Revolution Approaching?

Following the strong sentiment around the possible altcoin season and the expectation of a mega rally in the altcoin market, FOMO has finally calmed down for the better. Last week, we saw altcoins correcting in the mid-10-20% range, except for a few altcoins like Ethereum. Here are Santiment’s different data and comments regarding the bet…

Is the excitement of the altcoin era fading?

The “altcoin season” expectation and great rise excitement, which have been frequently heard in the cryptocurrency market in recent months, are being replaced by calmness. Many altcoins other than Ethereum have experienced a correction ranging between 10% and 20% over the past week. This shows that the feeling called “FOMO” (Fear Of Missing Out) in the markets has decreased significantly. According to the analysis of the data provider Santiment, the increasing pronunciations regarding the altcoin period often coincide with the market peaks. This suggests that investors turning to altcoins with great enthusiasm indicates a potential market top.

However, the decline in FOMO after the peak in March could create a huge opportunity for investors. Centiment data suggests that the current market sentiment could see us approaching a bottom, which could be a buying opportunity for smart investors. As FOMO levels reach 2024 lows, investors waiting for the market to calm down may consider taking action again. In particular, according to Santiment data, there is a significant decrease in crowd sentiment towards large-value altcoins, including Shiba Inu (SHIB), Dogecoin (DOGE) and XRP, following the recent price drops.

Is it too early for bullish expectations?

Although the Bitcoin price is approaching all-time highs, multiple altcoins are still trading below their peaks. Famous cryptocurrency analyst Benjamin Cowen stated that enthusiasm for an upcoming altcoin bull run may be a little premature. Cowen thinks that it is unlikely that a significant rise will occur before the US Federal Reserve (Fed) starts to cut interest rates. Historically, altcoins have always delivered strong returns following the Fed’s interest rate cuts. Cowen included the following statements:

The decline seen in most altcoins reflects the decline in the bullish/bearish index, which is reminiscent of the period leading up to the Fed’s interest rate cuts in 2019. This index had fallen sharply before the Fed started interest rate cuts in July 2019. It is important to follow these movements because without Fed interest rate cuts, the expectation of an altcoin era that will end Bitcoin’s dominance may be premature.

In conclusion, cryptokoin.com According to Santiment’s statement, which we quoted, the market environment where calmness prevails instead of excitement may create new opportunities for investors. However, as analysts state, it will be useful to closely follow macro-economic developments such as the Fed’s interest rate cuts.