While some coins have reclaimed key levels as the market rebounds, the broader altcoin market remains bearish. With multiple ETF decisions looming, investors are asking if an approval could spark the altcoin aeason this month.
Summary
- Altcoin season remains in limbo as most tokens stay stuck in consolidation despite the broader market recovery.
- The Altcoin Season Index dropped from 77 to 65, signaling weak momentum.
- An Uptober rally hinges on the SEC’s decision for 16 upcoming crypto ETFs.
Despite a broad recovery in the crypto market, the long-anticipated Altcoin Season remains noticeably muted. Ethereum is back above $4,400 while Binance Coin has scored a new all-time high, climbing above $1,100. Yet, most altcoins continue to lag behind, struggling to break out of their consolidation zones.
Coins like Cardano (ADA) and Tron (TRX) are up less than 1% in the last 24 hours. Cardano still trades below the $1.00 mark, while Tron holds at $0.34. XRP (XRP) has seen a modest 2% gain, yet its price remains within familiar territory.
Meanwhile, altcoins like Litecoin (LTC), Chainlink (LINK), Cronos (CRO), and Shiba Inu (SHIB) are posting losses, signaling broader hesitation among retail and institutional investors.
Earlier in September, the Altcoin Season Index surged to 77, fueling expectations of a full-blown rally. However, the index has now dropped to 67, indicating underperformance across a majority of altcoins.
The fading momentum has raised questions about whether the bullish sentiment often associated with “Uptober” can provide the necessary catalyst to revive the altcoin market.
Crypto ETF decisions could unlock altcoin season
Meanwhile, the U.S. Securities and Exchange Commission (SEC) is set to make final rulings on 16 crypto ETFs this month, covering assets tied to Solana, Ripple, Dogecoin, Litecoin, and Cardano. Approvals of these funds could mark a turning point for the market.
Grayscale’s Solana and Litecoin Trusts face deadlines on Oct 10, with others set for later in the month. Industry watchers say the recent adoption of standard generic listing rules by the SEC boosts the likelihood of approval. The agency has also paused its trend of delay notices, reinforcing optimism.
Analysts now peg the approval odds between 90% and 100%, and the expected greenlight could unlock a fresh wave of institutional capital into the sector. For now, whether Uptober’s bullish legacy translates into a full altcoin season depends on the SEC delivering a breakthrough that finally sparks the long-awaited rally.
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