Analysts at Presto Research, Peter Chung and Min Jung, are predicting a resurgence of altcoin activity following the Federal Reserve’s recent decision to cut interest rates by half a percentage point.
In a research note published on Friday, Chung and Jung argued that while altcoins have underperformed in the early part of 2025, the Fed’s rate-cut cycle could ignite a long-awaited altcoin season.
The analysts attributed the subdued performance of altcoins to higher yields in traditional finance, which have diverted investor attention from riskier crypto assets. However, they anticipate that as on-chain yields become more competitive, it could spark a rebound in the altcoin space.
The Federal Reserve’s rate cut, announced on Wednesday, sent both crypto and equity markets soaring. As interest rates decline, investors tend to shift towards riskier assets, including altcoins, which have lagged behind in recent months.
Fed Chair Jerome Powell cited improvements in macroeconomic conditions as the primary reason for the rate cuts.
The Blockchain Center’s Altcoin Season Index further supports the analysts’ prediction. The metric currently indicates that crypto markets are approaching the halfway point between Bitcoin and altcoin seasons. An altcoin season is defined when 75% of the top 50 cryptocurrencies outperform Bitcoin over a 90-day period.
