Altcoins
Ethereum and Altcoins Could “Recover Quickly” After FOMC Meeting, Trader Predicts
June 11, 2024 3:14 pm | 2 minute read
Cryptographic analyst Michael van de Poppe highlighted the continued decline in altcoin prices, attributing it to market weakness and upcoming economic events.
What happened: Michaël van de Poppe tweeted that altcoins are seeing significant declines ahead of the next Federal Reserve meeting, which is an important factor. He mentioned that altcoins have undergone a substantial correction in the last week due to several reasons, including general market weakness and no conclusion on the Ethereum (CRYPTO: ET) ETFs.
It also has noticed that the “Roaring Kitty” saga has impacted altcoin prices, with some dropping more than 20%. Van de Poppe emphasized that the real reason for the correction is the upcoming release of data on the consumer price index and the FOMC meeting on Wednesday, which often leads to downward momentum in cryptocurrency markets.
Van de Poppe explained that a strong dollar and the continuation of quantitative tightening (QT) are not favorable for altcoins. He said: “The last few times Jerome Powell spoke, cryptocurrency markets saw a substantial correction.” He also said that markets tend to be risk-on before such events.
Read also: Top Crypto Analyst Reshuffles Altcoin Portfolio Before Ethereum ETF: Here’s What It Turned Into
Because matter: Van de Poppe’s insights highlight the potential for further declines in altcoin prices due to economic factors. He noted that the unemployment rate has begun to accelerate and that economic data has weakened, while the The European Central Bank (ECB) has already started cutting rates.
The trader also highlighted that the Ethereum ETF is likely to be approved soon, which could impact the market. He expressed optimism about a potential turnaround, saying: “After previous FOMC meetings, markets have recovered quickly.”
He mentioned that Ethereum and Bitcoin (CRYPTO: Bitcoin) have seen significant gains following past meetings.
Van de Poppe has personally stated that he is all-in on altcoins and expects a positive outcome from the FOMC and Jerome Powell’s speech, resulting in strengthening markets. The launch of Ethereum ETF trading will be an additional factor in the coming weeks.
What’s next: The influence of Ethereum as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
Read next: Altcoins drop 70% against Bitcoin: this is why they just can’t move forward
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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