The excitement around a potential altcoin season has fizzled out, with altcoins correcting between 10-20%. The drop in altcoin FOMO suggests a potential market bottom and further buying opportunities ahead.

Altcoin FOMO Cools Down

On-chain data provider Santiment identifies a notable trend in the altcoin market. As per its analysis, the rising mentions of altseason often coincide with market tops and peaks. This suggests that traders have become overly greedy with their interest in altcoins, indicating a potential market top.

However, after the market peak in March, the fear of missing out (FOMO) has dropped significantly. Santiment data suggests that the current atmosphere of crowd fear could lead us closer to a market bottom, providing a huge opportunity for investors.

Crowd Sentiment Tanks

Furthermore, Santiment data shows a significant drop in crowd sentiment for large-cap altcoins like Shiba Inu (SHIB), Dogecoin (DOGE), and XRP following recent price declines. This sentiment shift could present a buying opportunity for patient traders.

FOMO Levels Reach 2024 Lows

As FOMO levels reach their 2024 lows, investors who have been waiting on the sidelines for the market to cool off might consider deploying fresh cash in the market.

Buying Opportunity Ahead

The drop in FOMO and surge in crowd fear hints at a potential market bottom. This could offer a buying opportunity for patient traders, as the market corrects and sentiment shifts.

Historical Context

Renowned crypto analyst Benjamin Cowen stated that the enthusiasm for an imminent altcoin bull run could be premature. He noted that a significant rally is unlikely until the US Federal Reserve begins cutting interest rates again. Historically, altcoins have delivered strong returns following Fed rate cuts. Cowen emphasized the importance of tracking these movements, as the anticipation of an altcoin season dominating Bitcoin may be premature without a reduction in interest rates by the Fed.