Memecoins Surge as Altcoin Season Gains Momentum Ahead of Fed Rate Cut
Bitcoin’s market dominance has fallen 3.5% over the past month as traders rotate into altcoins, pushing altcoin season indexes into “altseason” territory. Altseason occurs when alternative cryptocurrencies outperform Bitcoin, typically driven by rising risk appetite.
The expected Federal Reserve interest rate cut is fueling this shift, making traditional safe-haven assets less attractive. Over the last 24 hours, Bitcoin rose just 0.3%, while the CoinDesk Memecoin Index (CDMEME) jumped 7.1%, led by tokens like SHIB and BONE—even after the Shibarium flash loan exploit.
Traders on Polymarket assign a 92% probability to a 25-basis-point Fed cut this month, with CME FedWatch data showing similar odds.
Adding to optimism, several U.S. altcoin ETFs—including DOGE and TRUMP products—could launch by year-end. Approval would provide regulated access for retail and institutional investors, broadening exposure beyond Bitcoin and Ether and supporting further adoption of altcoins.
