The excitement around altseason, which had fueled a strong rally in the altcoin market, has finally subsided. Over the past week, altcoins have corrected by 10-20%, with a few exceptions like Ethereum. This cooling down of the market frenzy could be a sign of a potential market bottom, according to on-chain data provider Santiment.

Santiment's analysis reveals that the rising mentions of altseason often coincide with market tops and peaks, indicating that traders have become overly greedy and signaling a potential market top. However, since the market peak in March, the fear of missing out (FOMO) has dropped significantly, suggesting a shift towards a more fearful market sentiment.

This drop in FOMO levels has also led to a significant decline in crowd sentiment for large-cap altcoins like Shiba Inu (SHIB), Dogecoin (DOGE), and XRP, following recent price declines. According to Santiment, this sentiment shift could present a buying opportunity for patient traders. With FOMO levels reaching 2024 lows, investors who have been waiting on the sidelines may consider deploying fresh cash into the market.

Despite Bitcoin's price flirting around its all-time high levels, most altcoins continue to trade below their highs. Renowned crypto analyst Benjamin Cowen has cautioned that the enthusiasm for an imminent altcoin bull run may be premature. He believes that a significant rally is unlikely until the US Federal Reserve begins cutting interest rates again, which has historically led to strong returns in altcoins.

In conclusion, the cooling down of the altcoin frenzy and the drop in FOMO levels could signal a potential market rebound. While the market sentiment has shifted towards fear, patient traders may see this as a buying opportunity. However, it's essential to keep in mind that a significant rally in altcoins may depend on the Federal Reserve's interest rate cuts, which could be a while away.