Q4 Crypto Surge Likely, Driven by Bitcoin’s Breakout to $65K

The odds of a significant crypto rally in the fourth quarter are looking strong, especially with Bitcoin’s recent surge past the $65,000 mark, according to a leading crypto expert.

Altcoin FOMO returns as Bitcoin reaches $65,000

Markus Thielen, head of research at 10x Research, highlighted in a report dated Sept. 27 that a fourth-quarter rally is highly probable, with gains likely coming early. Thielen remarked that Bitcoin’s price crossing the $65,000 threshold has sparked a resurgence of FOMO (fear of missing out) in the altcoin space. “We could see a substantial upswing, potentially igniting further FOMO in the broader crypto market,” he explained.

At the time of writing, Bitcoin’s price stands at $65,424, according to CoinMarketCap.

The Altcoin Speculation Index from Capriole Investments has surged to 23%, showing a 13% increase over the past 30 days. This index measures the percentage of altcoins outperforming Bitcoin over a 90-day period, with higher numbers suggesting increased speculation in altcoins.

Among the top 100 cryptocurrencies, Sei has led the charge with a 37.79% gain since Sept. 20. Wormhole (W) and Shiba Inu (SHIB) followed close behind, rising by 32.83% and 32.08%, respectively. Thielen noted that SHIB has gained considerable traction among South Korean retail investors recently.

“In the past 24 hours, Shiba Inu has reclaimed the top spot in trading volume in South Korea, indicating rising speculation and setting the stage for a strong Q4 rally,” Thielen said.

As altcoins gain momentum, Bitcoin’s dominance in the market has slightly declined, dipping 1.57% since Sept. 20 to 57.51%, according to TradingView. Investors often monitor this metric to assess potential capital flows between Bitcoin and altcoins.

The Crypto Fear & Greed Index has also seen an increase, rising 11 points since Sept. 26, hitting a “Greed” score of 61.

Additional rate cuts will only increase interest in altcoins

Thielen suggested that continued openness by the U.S. Federal Reserve to lower interest rates could further fuel the altcoin market. After the Federal Reserve’s recent decision to cut rates by 50 basis points on Sept. 18, there has been a growing sentiment that riskier assets like cryptocurrencies stand to benefit. Lower rates reduce the appeal of traditional investments like bonds, pushing investors toward higher-risk, higher-reward assets.

Several analysts on social media echoed these sentiments, predicting even bigger altcoin gains on the horizon.

“Altcoins are seeing notable growth, but what’s coming in the next six months could be even more remarkable,” Michael van de Poppe, founder of MN Trading, said in a Sept. 27 post on X (formerly Twitter).

“It’s already shaping up to be something special,” he added.

Similarly, Joe McCann noted that “90% of all altcoins on Binance are currently trading above their 50-day moving averages,” signaling potential breakouts. Miles Deutcher, another crypto analyst, remarked that “altcoins are on the verge of breaking out of a months-long downtrend,” suggesting the best may still be ahead for the market.

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