Altcoin
Crypto Analyst Predicts Altcoin Boom Amid Economic Recession: “The Altcoin Bull Market Has Begun”
In the wake of dismal US economic data, crypto analyst Michael van de Poppe predicted a substantial rally in the altcoin markets.
What happened: On Friday, van de Poppe communicated his optimistic stance on cryptocurrencies to his followers on social media platform
This comes on the heels of the US job market falling from estimates in April, with unemployment rising to 3.9% and average hourly wages growing less than expected. Van de Poppe believes these economic indicators will force the Federal Reserve to turn on the money printers to support the labor market, leading to a rally in risky assets.
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“Terrible economic data -> DXY (US dollar index) lower. Furthermore, the case for QE (quantitative easing) and rate cuts will increase, and thus the rally in risk assets,” he said.
The analyst also predicts a period of consolidation for the altcoin market before it resumes recording new all-time highs.
He predicted that the total market capitalization of altcoins will stabilize in the range of $880 billion to $920 billion before racing towards an all-time high.
Van de Poppe also predicts the resurgence of retail traders in cryptocurrency markets once altcoins post significant gains.
“Retail is not even in the markets, while Bitcoin is around all-time highs. When will they come back? It will probably be after this summer, when altcoins start to take off,” he said.
Because matter: The recent downturn in the altcoin market has been blamed supply and demand dynamics and loss of momentumas reported by the pseudonymous crypto strategist Pentoshi.
The frequent launch of new altcoins has diluted demand, requiring around $200 million per day in new inflows to maintain current prices.
Also, cryptocurrency strategist Altcoin Sherpa recently predicted a 267% increase in the value of Solana SOL/USD before the end of the year. He suggested that buying Solana shares at current levels could yield substantial future gains. These predictions are in line with those of van de Poppe, indicating a potential boom in the altcoin market.
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This content was partially produced with the help of Benzinga Neuro and has been reviewed and published by Benzinga Editors.
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