Memecoins Rally as Traders Bet on Fed Rate Cut and U.S. Altcoin ETFs

The memecoin sector is gaining attention as discussions about a new altcoin season increase on social media. This is partly due to expectations of an upcoming Federal Reserve interest rate cut, which would benefit risk assets.
Bitcoin's market dominance decreased by 3.5% in the last month, with altcoins outperforming Bitcoin, leading altseason indexes into "altseason" territory.
Altseason typically occurs when capital shifts from Bitcoin to altcoins amid rising risk appetite.
The CoinDesk Memecoin Index (CDMEME) increased by 7.1%, driven by tokens like SHIB and BONE, following Shiba Inu's layer-2 network incident.
The performance boost in altcoins is linked to increased risk appetite, as lower interest rates make safe investments less attractive.
Prediction markets indicate a high probability (over 90%) of a Federal Reserve interest rate cut by 25 basis points this month.
New altcoin ETFs, possibly including a DOGE ETF and a TRUMP ETF, could be approved for U.S. markets in the year's last quarter, potentially attracting more retail and institutional investors.