Is the Crypto Market in a Bear Phase or is a Recovery on the Horizon Michau00ebl Van De Poppe Shares Insights
The cryptocurrency market cap took a 3% hit in early trading, dropping to $2.4 trillion, primarily due to Bitcoin’s downward trajectory. Last week, BTC closed near $63,000, a critical support level, sparking concerns about potential further declines. The price of Bitcoin has seen a 2.3% drop in the last 24 hours, currently hovering around $62,800. If BTC consistently closes below $63,000, it could test the next support level above $60,000.
What’s causing this setback for the coin? What challenges are looming on the horizon? Here are some insights for you!
Unveiling the Current Bear Market and Altcoin Sector
In a recent report, Michaël Van De Poppe delved into the current state of the crypto market, shedding light on notable shifts in investor behavior amid an extended downward trend. He observed a significant decrease in retail interest, with YouTube metrics showing only 25-30% engagement compared to 2021 levels. This decline in retail investors has coincided with a bearish phase, resulting in altcoins such as Chainlink plummeting by up to 60% against Bitcoin over the past five months.
Furthermore, Bitcoin’s dominance remains a pivotal factor influencing market sentiment. Since the approval of Bitcoin ETFs, Bitcoin has maintained stability around its all-time highs, solidifying its position while altcoins struggle to recover.
Van De Poppe’s Perspective on Meme Coins
Michaël Van De Poppe does not have faith in meme coins. He prefers to invest in blockchain projects that are shaping the future of finance. He believes that celebrity coins like TrumpCoin, Daddy Tate, and Iggy Azalea’s Mother Iggy are more about fame than genuine value.
However, he also highlighted some meme coins with potential for long-term gains, particularly Dogecoin (DOGE) and Pepe (PEPE). He underscored the risks associated with meme coin investments, warning about the volatility and speculative nature prevalent in this sector.
Current Price Movements
Meanwhile, most meme coins experienced a significant downturn in the last 24 hours. DOGE traded at $0.1208, marking a nearly 3% decline, while PEPE and RUNES dropped by 8% and 9.84%, respectively. His insights are crucial as there is anticipation of an upcoming rebound in the altcoin market, with expectations of a rotation starting in the next few weeks.
Market Outlook
Despite the prevailing bearish market conditions, analysts suggest that this phase may be short-lived, with a bullish reversal anticipated in the near future. Recent attention has shifted from US-based spot Bitcoin ETFs to the Ethereum network. According to Santiment’s on-chain data analysis, Ethereum witnessed a notable increase in active addresses last week, surpassing 617,000 addresses, marking the highest in three months.
The market is closely monitoring the upcoming listing of newly approved spot Ether ETFs in the US, which may bring a sense of relief. This mirrors the bullish trend seen earlier this year with spot BTC ETFs, which led to a surge towards an all-time high (ATH). Notably, BlackRock and Fidelity have already made investments in Ether ETFs, anticipating their listing next month, further fueling market optimism.
Tags
Altcoins
Bitcoin
Price Analysis