Memecoins Rally as Altcoin Season Gains Steam Ahead of Fed Rate Cut
Bitcoin’s market share has fallen 3.5% over the past month, as investors rotate into altcoins, pushing altcoin season indexes into “altseason” territory. Altseason occurs when alternative cryptocurrencies outperform Bitcoin, often fueled by rising risk appetite.
Expectations of a Federal Reserve interest rate cut this week are helping drive the trend, making traditional safe-haven assets less attractive. Over the past 24 hours, Bitcoin rose just 0.3%, while the CoinDesk Memecoin Index (CDMEME) jumped 7.1%, led by SHIB and BONE—even after Shiba Inu’s Shibarium suffered a flash loan exploit.
Traders on Polymarket see a 92% probability of a 25-basis-point Fed cut this month, with CME FedWatch showing similar odds.
Adding to optimism, U.S. altcoin ETFs—including DOGE and TRUMP products—could launch before year-end. If approved, these ETFs would offer regulated access for retail and institutional investors, broadening exposure beyond Bitcoin and Ether.
