Master Analyst: Altcoins Will Come Out of the ‘Danger Zone’ and Explode on This Date!

With the recent decline of Bitcoin, the cryptocurrency market has been turned upside down. Bitcoin, which traded around $67,000 last week, fell more than 2% to $65,100 during US trading hours. It has lost 7.5% in the last seven days. When the price of Bitcoin falls, other cryptocurrencies, namely altcoin projects, usually follow this decline. What are the reasons for this collapse and the predictions for the future, what do experts say?

Reasons for altcoin collapse

Cryptocurrency analyst Michaël van de Poppe, nicknamed “Crypto Michaël”, touches upon important points about the future of the market while examining the altcoin collapse. Poppe emphasizes that leading altcoins have lost more than 40% in value in the last two weeks, while on-chain altcoins have experienced a decline of over 70%. Also drawing attention to the effect of Bitcoin dominance on altcoins, Poppe predicts that a reversal in Bitcoin dominance could herald a new altcoin rally.

At this point, many people in the cryptocurrency market are questioning why altcoins have fallen so sharply. The answer lies with the experts! Van de Poppe points to the following elements:

• Spot Ethereum ETF Prospect and Uncertainty:According to Poppe, one of the main reasons for the collapse is the uncertainty around spot Ethereum ETFs in the USA. cryptokoin.com As we reported, despite receiving approval from the US Securities and Exchange Board (SEC), these ETFs are not yet listed. This situation causes confusion in the market and negatively affects market psychology. Poppe explains that the ETF approval process consists of two phases: 19b-4 forms (covering technical details and SEC compliance) and S1 forms related to listing on exchanges. The delay in listing causes downward pressure on the market. Poppe believes that once spot Ethereum ETFs are listed, Ethereum could be classified as a commodity comparable to Bitcoin. This classification could increase institutional investment and lead to broader acceptance of Ethereum and other cryptocurrencies.
• Market Impact of Macroeconomic Factors: Poppe states that lower-than-expected US inflation data initially pointed to a pause in the Fed’s interest rate hikes, but the Fed’s hawkish attitude continues to remain uncertain in the market. Altcoins perform better in low interest rates and high liquidity environments, but these environments do not currently exist. The dollar, which has strengthened with the recent interest rate cuts by the European Central Bank (ECB), appears as another factor that suppresses the cryptocurrency market.

When is the return expected in the market?

Despite the negative market psychology, there are signs of a potential recovery. Poppe remains optimistic that there may be a turnaround in the market within the next 1-2 weeks. Emphasizing that altcoins underperform due to the pressure of Bitcoin dominance on altcoins, Poppe emphasizes again that a reversal in Bitcoin dominance could herald a new altcoin rally.

Poppe also points out Ethereum’s underlying levels, which he thinks are valuable for a potential reversal against Bitcoin. However, he does not refrain from emphasizing that macroeconomic indicators such as the strengthening of the dollar and US treasury bond yields also affect market movements.