FOMO isn’t here yet! Here’s what that means for the Altcoin cycle

Key Takeaways

Altcoins are dropping steam. Google search curiosity for “alt season” has dropped by over 50% in per week. Are the chances of one other alt cycle fading?

Ten days in, Bitcoin dominance [BTC.D] continues to be caught underneath the 60% resistance. What’s extra, Bitcoin [BTC] has misplaced $230 billion off its $2.48 trillion market cap peak, roughly monitoring an 8% drop from its $124k all-time excessive.

In brief, the stage could also be set for altcoin rotation. 

Suppose again to late June, BTC.D topped 65% earlier than a 6% pullback, making its greatest dip because the election. In the meantime, TOTAL2 (market cap ex-BTC) jumped from $1 trillion to $1.7 trillion in simply two months. 

Supply: TradingView (TOTAL2)

Nevertheless, this wasn’t your typical alt rotation. 

As an alternative, it was an “altcoin” cycle, syncing with BTC bottoming at $100k, earlier than heading into worth discovery. In easy phrases, capital wasn’t leaving BTC, it was chasing higher returns in altcoins.

In. help of this, the Altcoin Season Index jumped from 22 to 50, marking the primary significant raise because the election. Nonetheless, it didn’t hit 75 for a full-blown “alt season.” Therefore, the query – Does the present setup have legs for one more cycle?

With BTC pausing, is it time for altcoins to shine?

Properly, the setup’s trying prime for altcoin rotation.

Bitcoin pulled again from the $117k resistance two days in the past, failing to flip it into help. With danger urge for food nonetheless muted, capital may simply bleed into different property.

That being stated, Google search interest for “alt season” cratered by 50% in per week. Whereas it peaked at 100 on 13 August, it’s now all the way down to 13. That’s a transparent sign that as a result of FOMO isn’t firing but, danger flows into alts are nonetheless tentative.

Supply: Traits.google.com

That units up a transparent divergence from the election cycle. 

Again then, BTC.D dropped to 54% in three weeks whereas TOTAL2 ramped to $1.7 trillion. The Altcoin Season Index didn’t simply hit 75, it blasted above 85, confirming a full-blown alt season.

Right here, the story’s totally different. BTC.D and TOTAL2 are aligned, however the index is caught in sub-60 ranges, removed from flipping this cycle right into a full-blown alt season. For buyers, which means FOMO hasn’t arrived but.