As the U.S. Federal Reserve's decision is anticipated, the cryptocurrency market is undergoing significant transformations. Altcoins like Optimism, ASI, and Notcoin are in the spotlight.
The Rate Cut, an Expected Trigger
Today, December 18, the U.S. Federal Reserve, led by Jerome Powell, might announce a rate cut. This decision is critical for financial markets as the return of liquidity is essential to support risk assets such as cryptos. According to crypto analyst Jonathan Nowak, if rates drop, the markets could see significant gains, with a 74% probability of this trend being confirmed. Additionally, recent U.S. employment data, released on December 15, indicates a slight increase in the unemployment rate to 7.145 million, which could prompt the Fed to act quickly to stabilize the economy.
Beginning of the Altcoin Season and Positive Signals
The **Total 3** indicator, which tracks the market capitalization of altcoins excluding bitcoin, ether, and stablecoins, shows a breakout to the upside of a 'bull flag' formation. This technical setup has an 80% chance of continuing upward, highlighting the altcoin potential for December. With bitcoin's dominance showing weakness and increasing liquidity through USDT, the beginning of the altcoin season is marked by rising volumes. The USDT market cap has been steadily increasing over 30 days, indicating that investors are preparing to enter the altcoin market.
Altcoins to Watch to End the Year Strong
According to Jonathan Nowak, some altcoins are particularly attracting expert attention due to their growth potential. Optimism (OP), based on layer 2 technology in Ethereum, has crossed critical technical thresholds, rising to $2.62 after stabilizing around $1.40. However, the analyst advises caution while waiting for a stabilization phase. The Artificial Superintelligence Alliance (ASI) project offers interesting potential with its current price near $3.40. ASI is consolidating its position but requires a thoughtful approach due to its high valuation. Notcoin (NOT), as an undervalued project, presents significant growth potential for investors willing to take calculated risks. Due to its volatility, a measured approach is recommended.
Technical and macroeconomic signals suggest that December could offer significant return prospects for altcoin investors. However, caution is advised, as market volatility could result in short-term corrections before reaching historical highs.
