Will the Fed Rate Cut Trigger Altcoin Season?

Group 1 - The recent interest rate cut has led to a rise in cryptocurrency prices, with Bitcoin increasing by 2% and Ethereum by over 3% shortly after the announcement [2] - Smaller cryptocurrencies like Avalanche and Binance Coin have also seen significant gains, with Avalanche up nearly 20% and Binance Coin up almost 9% in a week [2] - Despite the overall market gains, only a few cryptocurrencies, primarily Bitcoin and Ethereum, have attracted significant inflows, leaving many altcoins underperforming [3][8] Group 2 - Altcoin season is characterized by rising prices of smaller cryptocurrencies, a decrease in Bitcoin's market dominance, and increased trading volume in altcoins [4] - Historical data shows that during previous altcoin seasons, Bitcoin's market cap share fell below 35%, while altcoins rose above 45% [5] - Currently, Bitcoin's dominance is around 58%, with Ethereum at 13% and altcoins collectively at about 30%, indicating that the market is not yet in an altcoin season [6] Group 3 - The cryptocurrency market has been recovering from a prolonged downturn, with a new market cap high reached in August, but gains are primarily driven by a few major cryptocurrencies [7] - Institutional interest has been a significant factor in the current market dynamics, with a preference for established cryptocurrencies over speculative altcoins [8] - The likelihood of another altcoin season similar to those in 2017 and 2021 appears low, although rate cuts and ETF approvals could benefit altcoins with strong fundamentals [9]