Recent data released from the US provided a visible lift to the market, also supported by a dovish <a href="https://coingape.com/former-federal-reserve-adviser-calls-out-trump-allies-fed-remodeling-plans/" rel="noopener noreferrer nofollow">Federal Reserve</a> and the Quick Rate Adjustment (QRA). The employment data released on Friday depicted numbers weaker than forecasted, with Non-Farm Payrolls showing net additions of 175,000 jobs against the predicted 240,000.
The <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=e6c2264173c544ed8&amp;q=https://coingape.com/us-job-data-hints-at-bitcoin-price-rally-here-all/&amp;sa=U&amp;ved=2ahUKEwi-p7eB8PSFAxVOgf0HHSZ9CqAQFnoECAYQAg&amp;usg=AOvVaw3NbVHQuabWfeqepCygWw9u" rel="noopener noreferrer nofollow">Unemployment Rate</a> also rose modestly to 3.9% as opposed to the anticipated 3.8%, whereas the Month-over-Month Average Hourly Earnings increased by a mere 0.2%, less than the expected 0.3%. These numbers indicate defusing inflation concerns, thus shaping the coming monetary policy.
<h2 id="federal-reserve-s-influence-on-financial-markets">Federal Reserve’s Influence on Financial Markets</h2>
Concurrently, the dovish postures of the Federal Reserve and the Treasury have led to a dramatic flip in interest rate expectations, bringing down the US 2-year Yields from above 5% to nearly 4.7%. This sizeable yield decrease, as a result, poses doubts about the <a href="https://coingape.com/japanese-yen-jpy-strengthens-sharply-against-us-dollar-usd-shocks-crypto-stocks/" rel="noopener noreferrer nofollow">US Dollar</a> rally momentum that the market has recently witnessed.
As investors adjust their outlook on rate cuts in the upcoming year, the money market looks more accommodating to the softer dollar regime.
<h2 id="cryptocurrency-market-response">Cryptocurrency Market Response</h2>
The cryptocurrency&nbsp;market reacted positively to the general financial market. Consequently, the Bitcoin spot Exchange Traded Funds (ETFs) experienced significant net inflows totalling $378.3 million. The resurgence of interest was spotlighted by the <a href="https://coingape.com/grayscale-bitcoin-etf-ends-77-days-of-outflows-gbtc-inflows-begin/" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust</a> (GBTC), which saw a positive inflow for the first time in this context. 
The excitement, consequently, in the crypto sector is partly due to the general economic situation, which now supports riskier assets such as cryptocurrencies.&nbsp;
<h2 id="outlook-on-retail-investors-and-altcoins">Outlook on Retail Investors and Altcoins</h2>
With the latest market dynamics, retail investors mainly stayed out of the markets, especially the cryptocurrency markets, even as <a href="https://coingape.com/bitcoin-price-breaks-64000-as-btc-bounces-off-short-term-average/" rel="noopener noreferrer nofollow">Bitcoin</a> is about to hit its all-time high (ATH) level. The return of these investors is expected to happen near the recovery of the altcoins market, which is forecasted to be after summer.
In the past, retail investors got back into the market as <a href="https://coingape.com/markets/crypto-price-prediction-3-5-relief-rally-bolster-btc-60k/" rel="noopener noreferrer nofollow">altcoins</a> – lesser-known cryptocurrencies – began to rise in value, indicating a possible ripple effect across the crypto market. This pattern also suggests that there would still be early birds for those who want to enter the market before the broader market participation. Forecasts are that after the summer, there will come a large inflow in altcoin investments, possibly leading to the scion of the “altseason.”
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 𝗧𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 <a href="https://twitter.com/hashtag/%F0%9D%97%AE%F0%9D%97%B9%F0%9D%98%81%F0%9D%98%80%F0%9D%97%B2%F0%9D%97%AE%F0%9D%98%80%F0%9D%97%BC%F0%9D%97%BB?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#𝗮𝗹𝘁𝘀𝗲𝗮𝘀𝗼𝗻</a> 𝘄𝗶𝗹𝗹 𝘀𝘁𝗮𝗿𝘁 𝘀𝗼𝗼𝗻. &nbsp; Total Altcoin MCap is forming an inverse head and shoulder pattern. &nbsp; A breakout will send the Total <a href="https://twitter.com/hashtag/Altcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Altcoin</a> MCap to $𝟰 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻.&nbsp; &nbsp; This could take a few months to play out, but believe me, the… <a href="https://t.co/2BaL4THL2p" rel="noopener noreferrer nofollow">pic.twitter.com/2BaL4THL2p</a>
 — Ted (@TedPillows) <a href="https://twitter.com/TedPillows/status/1786830281623630159?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 4, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Moreover, the market capitalization of altcoins is demonstrating a technical formation that might represent a big movement in the near future. The formation of an inverse head-and-shoulders pattern in the Total <a href="https://coingape.com/blog/altcoin-season-2024-4-factors-for-delay-in-altcoins-rally/" rel="noopener noreferrer nofollow">Altcoin Market Cap</a> indicates a potential breakout that might push the market cap to $4 trillion, according to analysts.
As a result, this scenario, expected to unfold over the next few months, signals substantial growth potential in the altcoin market, which could attract significant retail investor interest once again.
Read Also: <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=e6c2264173c544ed8&amp;q=https://coingape.com/peter-brandt-backs-michael-saylors-controversial-bitcoin-is-king-statement/&amp;sa=U&amp;ved=2ahUKEwjrk5WN7fSFAxVg_rsIHVfDAYoQFnoECAEQAg&amp;usg=AOvVaw2tNFLhxaZaxCF2tWr4Rk51" rel="noopener noreferrer nofollow">Peter Brandt Backs Michael Saylor’s Controversial Bitcoin Is King Statement</a>
The post <a href="https://coingape.com/analysts-predict-biggest-altcoin-market-rally-to-4-trillion-market-cap/" rel="noopener noreferrer nofollow">Analysts Predict Biggest Altcoin Market Rally To $4 Trillion Market Cap</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Analysts Predict Biggest Altcoin Market Rally To $4 Trillion Market Cap

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