The Fed stops liquidity withdrawals, money returns to the market. This shift in liquidity is being monitored by traders and investors. As liquidity returns, cryptocurrencies start to outperform Bitcoin. Such performance could signal the onset of an altcoin season.
With the Federal Reserve pausing liquidity withdrawals, cash flow is moving back into financial markets. Traders and investors are closely watching how this liquidity shift affects asset prices and risk sentiment. As liquidity improves, cryptocurrencies begin to outperform Bitcoin, signaling a potential tilt toward altcoins. Analysts say this early outperformance could mark the start of an altcoin season as money rotates into alternative tokens.
While Bitcoin remains the benchmark, the broader crypto market could see renewed upside as capital reallocates across sectors. Investors should monitor liquidity signals and sector rotation to gauge the durability of this nascent trend.
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