Altcoins See Potential Surge Before Fed Impact

Recent data shows a significant drop in altcoin dominance, mirroring the end of quantitative tightening. Expert prediction: this could be a last-chance opportunity before new Fed Chair actions drive risk aversion and push altcoins down again. 2017, 2021, and early 2025 saw major altseasons begin after quantitative tightening ended or paused. Altcoin dominance is at multi-year lows, mirroring pre-altseason levels that coincided with significant gains. This aligns with on-chain signals like Ethereum/BTC coiling under 0.04 and stablecoins flooding Layer-2 networks. Traders are already positioning, with funding rates on alt perpetuals flipping negative and open interest surging in Solana, Avalanche, and Layer-2 ecosystems. Polaris_xbt predicts a potential rally before the appointment of the new Fed Chair. Once the news hits headlines, institutions might sell the news, shifting back into Bitcoin and fiat currency, leading to another decline in alt dominance.