Why Altcoins Are Crashing and What’s Next, Reveals Prominent Crypto Analyst

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As an experienced crypto analyst with a deep understanding of the market dynamics, I find Michaël van de Poppe’s insights into the ongoing altcoin crash both insightful and timely. His analysis provides valuable context to the current market situation and sheds light on some critical factors driving the price movements of various cryptocurrencies.

In a recently published video, renowned crypto expert Michaël van de Poppe, or “Crypto Michaél,” explained the causes of the current downturn in altcoin values and shared his perspectives on the potential developments within the cryptocurrency sector.

I acknowledged the considerable decline in the altcoin market recently, with some prominent altcoins losing over 40% of their value in just two weeks, and on-chain altcoins experiencing a drop of more than 70%. I emphasized the inherent volatility of altcoins, which can lead to swift price increases followed by sharp corrections.

One reason for the recent drop in Ethereum‘s price, according to Michaël, is the ambiguity surrounding the launch of spot Ethereum ETFs in the United States. Although the SEC has given its approval, these ETFs have not yet been listed, leading to uncertainty and negatively influencing investor sentiment. The process involves two separate applications – 19b-4 forms for technical details and compliance with the SEC, and S1 forms for the exchanges to list the ETFs. The delay in listing has added to the market’s downward trend.

As a crypto investor, I’ve observed that the green light for spot Ethereum ETFs might label Ethereum as a commodity, akin to Bitcoin. I firmly believe this change in classification could pave the way for more institutional investment and wider recognition of Ethereum and other digital currencies within the financial world.

As a crypto investor, I’d like to share my perspective on another market factor that Michaël touched upon – recent macroeconomic data. Specifically, he mentioned the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI). These indicators displayed lower-than-anticipated inflation rates initially indicating a possible end to rate hikes from the Federal Reserve. However, the Fed’s more aggressive stance has left us in a state of uncertainty.

The influence of the US dollar‘s power and its repercussions on the cryptocurrency sector were likewise explored. Generally, a robust US dollar tends to weaken the returns of riskier investments such as cryptocurrencies. Moreover, Michaël pointed out that recent actions taken by the European Central Bank (ECB) to reduce interest rates have fortified the dollar, intensifying the burden on the crypto market.

Michaël maintains a positive outlook despite the present market slump. He anticipates that the upcoming listing of Ethereum-backed ETFs in the United States could serve as a major turning point, triggering a bullish momentum reminiscent of historical trends following the approval of similar products for Bitcoin. Initial price corrections may be followed by substantial increases.

Michaël emphasized the significance of Bitcoin’s influence over altcoins and how Bitcoin’s dominance affects their performance. With Bitcoin’s dominance remaining strong, altcoins have been struggling. Nevertheless, he predicts that a shift in Bitcoin’s dominance could mark the beginning of an upswing for altcoins.

Michaël highlighted numerous pivotal points of resistance for Ethereum in relation to Bitcoin in his technical examination. He underscored the necessity of these thresholds holding firm to instigate a possible price reversal. Additionally, he delved into the relevance of macroeconomic factors such as the dollar’s power and US Treasury bond yields, which significantly impact market dynamics.

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2024-06-16 14:40