When will top altcoins recover from the crash and surge out of the danger zone
In a recent video, well-known cryptocurrency analyst Michael Van De Poppe delved into the current state and future prospects of the cryptocurrency market, with a particular focus on altcoins. He highlighted the extreme volatility of the altcoin market, noting its ability to experience sudden spikes and significant corrections, as observed in recent times. Some major altcoins have witnessed a staggering decline of over 40% in the past two weeks, with certain on-chain altcoins plummeting by more than 70%.
The unpredictability of the altcoin market has raised concerns about the future trajectory of these digital assets and whether the downward trend will persist. Poppe identified several key factors that play a crucial role in the ongoing correction.
One significant factor he pointed out is the delay in the launch of the Ethereum ETF. Poppe explained that altcoins like Ethereum are facing challenges due to the uncertainty surrounding the commencement of trading for the Ethereum ETF. Despite receiving approval, the ETF has not yet been listed, causing confusion and instability in the market. Poppe believes that once the ETF starts trading, it could attract more investor attention and potentially trigger a market rally, similar to previous ETF launches.
The analyst also discussed the impact of recent macroeconomic developments, such as CPI, PPI, and FOMC announcements, on market sentiment. The lower-than-expected CPI and PPI data indicate a possible easing of inflationary pressures and hint at future rate cuts by the Federal Reserve (Fed). Altcoins typically thrive in environments of quantitative easing and low interest rates, characterized by increased global liquidity. However, the current market conditions, marked by a stronger dollar and reduced expectations of rate cuts, have adversely affected cryptocurrencies, which are perceived as risk-on assets.
Despite the prevailing downward trend, Poppe remains optimistic about a potential market reversal in the near future. He anticipates that the listing of the Ethereum ETF could serve as a catalyst for renewed market interest and confidence. While Bitcoin continues to perform well, Ethereum and other altcoins are still trading well below their peak prices. Poppe advises monitoring Bitcoin dominance and the relative performance of Ethereum against Bitcoin as indicators of potential altcoin recovery.
Tags: Altcoins, Crypto news, Cryptocurrency, Price Analysis.