Altcoins
Major capital rotation into altcoins will begin in two weeks, one analyst predicts
As we enter the final week of June, the altcoin market remains weak. Over the past weekend, the market lost more than $25 billion, with Ethereum (ETH) and ten other altcoins down between 3 and 10%. However, analysts believe that this could be the last correction before new capital begins to flow back into the altcoin market.
Capital rotation into Altcoins will begin soon
Renowned crypto analyst Michael van de Poppe predicts the end of downward trend of cryptocurrencies for altcoins. In his recent tweet, Poppe said: “The last few weeks of downtrend for altcoins are coming to an end. Maybe from next week, or the week after, the great rotation of capital should begin.”
Expressing confidence in his current stance on the altcoin, Poppe expects the period of risk appetite to begin soon in the near future. Analyst van de Poppe stated that the altcoin market is approaching the final stage of decline with investors preparing for a potential bullish rotation.
Furthermore, Poppe added that the alt. The market is currently terrible as the BTC valuation of several altcoins has reached new lows. However, he says the last time this happened, some altcoins rallied as much as 300-500%.
This chart explains it all. THE #Altcoins sentiment is currently dire, as BTC valuations of all altcoins are hitting new lows.
Last time this happened:$SOL
went +500%$FET went +650%$RNDR went +300%
This time, altcoins are likely to do the same. pic.twitter.com/KYpzPqwDKV
— Michaël van de Poppe (@CryptoMichNL) June 22, 2024
Analyst van de Poppe also shared an optimistic outlook for the future of alternatives. He noted that the alternative market cap is still down 50% from its 2021 all-time high, with the recent correction pushing it further down 30%.
With the correction now nearing its end, Poppe predicts a potential 100% altcoin rally that could align with Bitcoin’s trajectory.
Read also: ETH price reversal soon as Ethereum ETF arrives in two weeks
Cracks in the cryptocurrency market
Last week saw the second worst weekly decline in the cryptocurrency market for the year 2024 so far. this is clearly due to declining demand for Bitcoin ETFs and uncertain monetary policy.
According to data compiled by Bloomberg, the top 100 digital assets underwent a 5% correction last week. These cracks in the cryptocurrency market appear amid doubts over the Fed’s decision to target rate cuts as interest rates are currently near two-decade highs.
Courtesy: Bloomberg
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