Crypto Meme Tokens Rally as Investors Bet on U.S. ETFs and Fed Policy

Memecoins Rally as Altcoin Season Picks Up Ahead of Fed Decision

Bitcoin’s market dominance has dropped 3.5% over the past month as investors shift capital into altcoins, pushing altcoin season indexes into “altseason” territory. Altseason refers to periods when alternative cryptocurrencies significantly outperform Bitcoin, typically driven by heightened risk appetite.

Expectations of an upcoming Federal Reserve interest rate cut are fueling the move, making traditional safe-haven assets less appealing. Over the past 24 hours, Bitcoin rose just 0.3%, while the CoinDesk Memecoin Index (CDMEME) surged 7.1%, led by tokens such as SHIB and BONE—even following the Shibarium flash loan exploit.

Market sentiment reflects strong odds of a Fed rate cut, with Polymarket traders assigning a 92% probability of a 25-basis-point reduction and CME FedWatch data showing similar expectations.

Meanwhile, a wave of U.S. altcoin ETFs—including potential DOGE and TRUMP products—could debut by year-end. Approval would provide regulated exposure for retail and institutional investors, expanding opportunities beyond Bitcoin and Ether and supporting further altcoin adoption.