Altcoin
Top Analyst Predictions Altcoin Bearish Today, Market Set for Recovery: Here’s Why — TradingView News
In a recent social media post, renowned cryptocurrency analyst Michael Van de Poppe shared his predictions regarding the potential bottom of the altcoin market.
Van de Poppe highlighted the importance of key economic data and upcoming interest rate decisions by the Federal Open Market Committee (FOMC), highlighting their potential impact on the cryptocurrency market.
Altcoin rally ahead? CPI data points to a bullish outlook
Consumer price index (CPI) data revealed that US inflation fell to 3.3%, lower than expectations, which he said is bullish news for the altcoin market. CPI data is of particular importance as it influences the Federal Reserve’s decision on interest rate cuts.
Van de Poppe explained that if the consumer price index data were higher than expected, it would lead to a stronger US dollar and higher yields. In such a scenario, the chances of a short-term rate cut would have diminished, leading to a decline in risky assets. On the contrary, a lower-than-expected CPI paves the way for a positive market reaction, as is the case today.
The FOMC interest rate decisions were identified as the second significant event of the day. Following the recent rate cut by the European Central Bank, there is speculation that the United States may consider similar measures.
Van de Poppe highlighted the importance of Federal Reserve Chairman Jerome Powell’s speech, as it could provide valuable insights into future monetary policy, potentially influencing market sentiment.
Trade with caution
The altcoin and cryptocurrency markets underwent notable corrections last week, led by Ethereum (ETH), the largest altcoin in the market, with a price decline of more than 5%, with historical negative correlation observed during meetings of the FOMC and CPI releases.
However, Van de Poppe suggested that an upward repricing could be expected, which could lead to Bitcoin approaching its all-time high of $73,700 in the coming weeks if the FOMC adopts a dovish stance.
However, caution is advised, as price action can be deceptive. In the case of a no-change rate decision, there may be initial bearish responses from the market, with the true impact coming later.
Another market expert, Adrian Zduńczyk, offered his point of view, highlighting the tendency for prices to return to previous levels with little effect on volatility following the FOMC decisions. While traders often anticipate news releases and follow patterns, he cautioned against trading against the Federal Reserve’s monetary policy decisions.
As the altcoin market awaits the outcome of key economic data and FOMC decisions, analysts are closely monitoring these factors, anticipating a potential reversal and subsequent market recovery.
With the Ethereum ETF looking to trade in the coming weeks, the summer months promise renewed market momentum and a potential challenge to all-time highs.
ETH is currently trading at $3,618, recording a significant increase of 4.1% in the last few hours, coinciding with positive CPI data and growing expectations of favorable news from the US Federal Reserve.
Featured image from DALL-E, chart from TradingView.com