Memecoins are rallying as traders anticipate a Federal Reserve interest rate cut, sparking new enthusiasm for altcoins. This shift signals a possible new altseason, a period where alternative cryptocurrencies notably outperform Bitcoin.
Over the past month, Bitcoin’s market dominance has decreased by 3.5%. This decline coincides with altcoin season indexes—such as those from CoinMarketCap and CoinGlass—entering territory that confirms strong altcoin outperformance.
Altseason arises when investor appetite shifts from Bitcoin to riskier altcoins, often driven by broader market optimism. In the last 24 hours, Bitcoin’s price edged up only 0.3%, while the CoinDesk Memecoin Index (CDMEME) surged 7.1%. Leading this rally are tokens like SHIB and BONE, which defied expectations by climbing even after the Shiba Inu network experienced a flash loan exploit.
This growing interest reflects a rising risk tolerance among investors, partly fueled by anticipated monetary easing. Traders on prediction markets like Polymarket place a 92% probability on a 25 basis point rate cut by the Fed this month, with a smaller chance of a 50 bps reduction. The CME FedWatch tool reflects similar odds, signaling an environment favorable to higher-risk assets.
Adding to the momentum is the prospect of new altcoin exchange-traded funds (ETFs) entering the U.S. market in the final quarter of 2025. Submissions include notable proposals for a DOGE ETF and a TRUMP ETF. If approved, these ETFs could broaden both retail and institutional exposure to altcoins beyond Bitcoin and Ethereum, whose U.S. spot ETFs have already attracted billions in assets.
Investors should keep in mind that altcoin markets tend to be more volatile and riskier than Bitcoin, especially amid regulatory uncertainties and technical vulnerabilities highlighted by events like the Shibarium exploit.
Overall, the convergence of monetary easing expectations and expanding regulated altcoin investment options is fueling renewed enthusiasm in the memecoin and broader altcoin sectors, potentially marking the start of an altseason phase.
Source: CoinDesk. Read the original coverage for full details.