Altcoin
Crypto News Today: Altcoin Market Cap Set to Consolidate Before Rally
Over the past few days, the cryptocurrency sector has continued to consolidate with no clear winner between buyers and sellers. In the medium term, the lack of definitive direction on Bitcoin (BTC) price action has accelerated profit-taking in the altcoin sector.
Crypto whales accumulate gradually
However, on-chain data shows that smart traders have continued to accumulate strategic crypto assets in preparation for explosive rallies ahead.
Furthermore, fundamental tailwinds such as the fourth Bitcoin halving and the approval of BTC and Ethereum spot ETFs in the US and Hong Kong have already occurred in recent months.
As a result, increased cash inflows from institutional investors to the cryptocurrency sector will continue to enhance existing liquidity. In latest disclosures, Singapore’s largest bank, DBS, holds Ether worth nearly $650 million, according to Nansen data.
The days of disruption for the altcoin industry are numbered
As already mentioned, a period of boredom is underway for the markets.
Expecting the lateral consolidation to continue for a while.
Further downward pressure for the #Altcoins they seem unlikely. pic.twitter.com/sDG9NIK5K7
— Michaël van de Poppe (@CryptoMichNL) May 30, 2024
Aside from a few altcoins led by those in the meme coin industry, which have posted colossal profits, most are still consolidating after the crypto bear outbreak earlier this year. According to renowned crypto analyst Michaël van de Poppe, the total capitalization of the altcoin market will soon continue to consolidate around $667 billion.
However, the crypto analyst believes that the downward pressure in the altcoin sector is over, thus signaling an inevitable bullish breakout.
Similar sentiments were expressed by another crypto analyst, aka MikyBull Crypto, who believes that the altcoin industry is closely replicating the 2016/2017 rally in the ongoing bull market. The crypto analyst pointed out that the ongoing correction in altcoins was the last jolt before the long-awaited parabolic rally.