Altcoins
Ethereum “Attacks” Its All-Time High, Driving Altcoins in the Market “Only Up”
THE cryptocurrency market is poised for a significant breakthrough, which could push Ethereum (ET) and altcoins at previous all-time highs. The change came as US consumer price index (CPI) data on June 12 came in lower than expected.
According to Michaël van de Poppe, CIO and founder of MN Trading Consultancy, this could be a “huge sign” for altcoins and Bitcoin (Bitcoin). In particular, the professional trader emphasized finance data as a leading indicator of this bullish position in a send ON X.
“Dollar and Treasury yields are falling significantly as markets expect rate cuts to occur.”
—Michael van de Popp
Core CPI year-over-year (YoY), month-over-month (MoM), and regular CPI YoY and MoM were all lower than forecast. This positive data suggests that inflation is weakening, potentially leading to interest rate cuts by the Federal Reserve.
Macroeconomic data to boost the altcoin season
Early on June 12, Van de Poppe had declared that the bottom of altcoins may have been hit, as multiple macroeconomic events, including the CPI news and the Federal Open Market Committee (FOMC) meeting, would impact the markets. He compared the potential rally to previous FOMC events, where cryptocurrencies recorded significant gains after the pre-event correction.
“It could even be that Bitcoin hits an all-time high in the next few weeks if the FOMC takes a dovish stance.”
—Michael van de Poppe
The analyst also predicts a decline in dollar and Treasury bond yields based on CPI data and upcoming Producer Price Index (PPI) data, leading to the end of the altcoin and cryptocurrency market correction.
“Once every year a golden opportunity”
This outlook is in line with the long-term cycle analysis provided by Jelle, a well-known cryptocurrency action trader. According to Jelle, Altcoins Offer Investors a “Golden Opportunity Once Every Few Years,” as reported by Finbold.
“Altcoins offer investors a golden opportunity once every few years” to “make a lot of money”.”
— Jelle
On that note, TradingView’s “Crypto Total Market Cap Excluding BTC” index (TOTAL2) shows a pattern of accumulation zones lasting 450, 720, and now 650 days in each cycle. If this pattern occurs, an altseason is imminent and could bring huge profits for traders who position themselves at this point.
Van de Poppe believes that, after the correction period, the cryptocurrency market will move “only upwards” with the potential approval of the Ethereum ETF in the coming weeks. Therefore, Ethereum may hit its all-time high during the summer.
“After that, it is only on the upside that the Ethereum ETF will likely find acceptance in the coming weeks and start attacking the all-time high over the summer.”
—Michael van de Poppe
In particular, another well-known one cryptocurrency trader and on-chain analyst, Ali Martinez, reported that Ethereum whales continue to accumulate. During the recent decline, these large-cap addresses purchased over 240,000 ETH, worth $840 million, Martinez pointed out.
As the cryptocurrency market awaits the FOMC rate decision and Fed speech, traders and investors should keep an eye on the price action of gold, the dollar, and Treasury bond yields. While an altseason seems likely, it is essential to remember that past performance does not guarantee future results and that demand plays a crucial role in driving the altcoin market.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.