Fed’s policy shift could ignite altcoin momentum in coming months. Institutional adoption and liquidity surge boost altcoins’ breakout potential ahead. Record $7.5 trillion cash hoard signals major capital rotation opportunity. According to analyst Dan Gambardello, the global altcoin market appears ready for a major breakout as key macroeconomic and policy factors align. Growing optimism stems from expectations that the Federal Reserve will soon end its Quantitative Tightening (QT) cycle, potentially marking a turning point for risk assets. Rising institutional participation and record liquidity levels are also creating conditions that could drive renewed momentum across the digital asset landscape. Also Read: Pundit: ‘XRP Endgame that Most are Missing’ Federal Reserve’s Policy Shift Sets the Stage for Altcoin Rally Attention has turned to the Federal Reserve, with reports suggesting that QT could be concluded at the upcoming FOMC meeting. Alongside this, market participants anticipate rate cuts that could encourage fresh investment inflows. Historically, similar periods of policy easing have fueled growth in cryptocurrencies as liquidity expands and borrowing costs decline. Consequently, many investors are positioning themselves ahead of what could be the start of a new cycle for altcoins. This expected shift in monetary policy could inject confidence into a market that has endured nearly two years of compression. As liquidity conditions improve, analysts believe altcoins could experience a gradual rise supported by stronger market fundamentals and increasing investor appetite for risk. Record Cash Hoard Points to Capital Rotation into Altcoins Another major factor underpinning this optimism is the record $7.5 trillion currently parked in U.S. money market funds. As yields fall with interest rate reductions, a portion of these funds may flow into assets offering higher returns such as cryptocurrencies and equities. In previous cycles, similar liquidity shifts have driven massive rallies across global markets. Hence, the current environment could once again set the stage for substantial capital rotation into digital assets. Institutional Adoption and Regulatory Clarity Fuel Altcoin Prospects Institutional engagement continues to strengthen amid growing regulatory clarity. Coinbase CEO Brian Armstrong noted that bipartisan progress on a crypto market structure bill could accelerate before year-end. Additionally, Ethereum’s ETF approval and upcoming altcoin ETF proposals are opening regulated investment channels. Despite prolonged consolidation, the altcoin market cap excluding Bitcoin and stablecoins has held above $1 trillion, signaling resilience. With the Fed nearing policy easing and institutional rails expanding, altcoins may soon enter a new phase of sustainable growth. Also Read: XRP Leads Top 15 Payment Projects by FDV: Details The post Altcoins Eye Major Breakout as Fed Eases Tightening and Institutional Adoption Grows appeared first on 36Crypto. Fed’s policy shift could ignite altcoin momentum in coming months. Institutional adoption and liquidity surge boost altcoins’ breakout potential ahead. Record $7.5 trillion cash hoard signals major capital rotation opportunity. According to analyst Dan Gambardello, the global altcoin market appears ready for a major breakout as key macroeconomic and policy factors align. Growing optimism stems from expectations that the Federal Reserve will soon end its Quantitative Tightening (QT) cycle, potentially marking a turning point for risk assets. Rising institutional participation and record liquidity levels are also creating conditions that could drive renewed momentum across the digital asset landscape. Also Read: Pundit: ‘XRP Endgame that Most are Missing’ Federal Reserve’s Policy Shift Sets the Stage for Altcoin Rally Attention has turned to the Federal Reserve, with reports suggesting that QT could be concluded at the upcoming FOMC meeting. Alongside this, market participants anticipate rate cuts that could encourage fresh investment inflows. Historically, similar periods of policy easing have fueled growth in cryptocurrencies as liquidity expands and borrowing costs decline. Consequently, many investors are positioning themselves ahead of what could be the start of a new cycle for altcoins. This expected shift in monetary policy could inject confidence into a market that has endured nearly two years of compression. As liquidity conditions improve, analysts believe altcoins could experience a gradual rise supported by stronger market fundamentals and increasing investor appetite for risk. Record Cash Hoard Points to Capital Rotation into Altcoins Another major factor underpinning this optimism is the record $7.5 trillion currently parked in U.S. money market funds. As yields fall with interest rate reductions, a portion of these funds may flow into assets offering higher returns such as cryptocurrencies and equities. In previous cycles, similar liquidity shifts have driven massive rallies across global markets. Hence, the current environment could once again set the stage for substantial capital rotation into digital assets. Institutional Adoption and Regulatory Clarity Fuel Altcoin Prospects Institutional engagement continues to strengthen amid growing regulatory clarity. Coinbase CEO Brian Armstrong noted that bipartisan progress on a crypto market structure bill could accelerate before year-end. Additionally, Ethereum’s ETF approval and upcoming altcoin ETF proposals are opening regulated investment channels. Despite prolonged consolidation, the altcoin market cap excluding Bitcoin and stablecoins has held above $1 trillion, signaling resilience. With the Fed nearing policy easing and institutional rails expanding, altcoins may soon enter a new phase of sustainable growth. Also Read: XRP Leads Top 15 Payment Projects by FDV: Details The post Altcoins Eye Major Breakout as Fed Eases Tightening and Institutional Adoption Grows appeared first on 36Crypto.

Altcoins Eye Major Breakout as Fed Eases Tightening and Institutional Adoption Grows

2025/10/24 20:27
  • Fed’s policy shift could ignite altcoin momentum in coming months.
  • Institutional adoption and liquidity surge boost altcoins’ breakout potential ahead.
  • Record $7.5 trillion cash hoard signals major capital rotation opportunity.

According to analyst Dan Gambardello, the global altcoin market appears ready for a major breakout as key macroeconomic and policy factors align. Growing optimism stems from expectations that the Federal Reserve will soon end its Quantitative Tightening (QT) cycle, potentially marking a turning point for risk assets. Rising institutional participation and record liquidity levels are also creating conditions that could drive renewed momentum across the digital asset landscape.


Also Read: Pundit: ‘XRP Endgame that Most are Missing’


Federal Reserve’s Policy Shift Sets the Stage for Altcoin Rally

Attention has turned to the Federal Reserve, with reports suggesting that QT could be concluded at the upcoming FOMC meeting. Alongside this, market participants anticipate rate cuts that could encourage fresh investment inflows. Historically, similar periods of policy easing have fueled growth in cryptocurrencies as liquidity expands and borrowing costs decline. Consequently, many investors are positioning themselves ahead of what could be the start of a new cycle for altcoins.


This expected shift in monetary policy could inject confidence into a market that has endured nearly two years of compression. As liquidity conditions improve, analysts believe altcoins could experience a gradual rise supported by stronger market fundamentals and increasing investor appetite for risk.


Record Cash Hoard Points to Capital Rotation into Altcoins

Another major factor underpinning this optimism is the record $7.5 trillion currently parked in U.S. money market funds. As yields fall with interest rate reductions, a portion of these funds may flow into assets offering higher returns such as cryptocurrencies and equities. In previous cycles, similar liquidity shifts have driven massive rallies across global markets. Hence, the current environment could once again set the stage for substantial capital rotation into digital assets.


Institutional Adoption and Regulatory Clarity Fuel Altcoin Prospects

Institutional engagement continues to strengthen amid growing regulatory clarity. Coinbase CEO Brian Armstrong noted that bipartisan progress on a crypto market structure bill could accelerate before year-end. Additionally, Ethereum’s ETF approval and upcoming altcoin ETF proposals are opening regulated investment channels.


Despite prolonged consolidation, the altcoin market cap excluding Bitcoin and stablecoins has held above $1 trillion, signaling resilience. With the Fed nearing policy easing and institutional rails expanding, altcoins may soon enter a new phase of sustainable growth.


Also Read: XRP Leads Top 15 Payment Projects by FDV: Details


The post Altcoins Eye Major Breakout as Fed Eases Tightening and Institutional Adoption Grows appeared first on 36Crypto.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

Wormhole launches reserve tying protocol revenue to token

Wormhole launches reserve tying protocol revenue to token

The post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserve
Share
2025/09/18 01:55