The altcoin market is showing early signs of a rally, but renowned analyst VirtualBacon urges caution for investors.
Current Situation in the Altcoin Market
Since April, the altcoin market has grown by at least 27.23%. Ethereum increased by 47.04%, and Solana by 46.73%. Smaller altcoins like PEPE, TAO, and SUPER have also shown significant growth, each reporting at least a 40% rise.
Key Factors Driving the Altcoin Trend
A temporary halt in the US-China trade war for 90 days has reduced market volatility and boosted liquidity. VirtualBacon highlights that the Global Liquidity Index has recently posted its first higher high since 2021, which is a key indicator for an altcoin season.
Top Altcoins to Watch
Ethereum and Solana are recommended for their strong fundamentals. VirtualBacon also suggests considering ALGO and IOTA as alternatives to XRP. In the gaming sector, SUPER stands out, while in the AI space, TAO has seen significant growth following its token updates. Among meme coins, PEPE’s market cap has dramatically risen from $2B to $5B over the past month.
Despite the positive momentum, VirtualBacon warns against premature expectations of a full altcoin season. This requires the US Federal Reserve to conclude its Quantitative Tightening.
