Altcoins
Why Ethereum Could Lead the Next Altcoin Rally?
The cryptocurrency market has turned bearish in the medium term as Bitcoin (BTC) price has fallen below $61k over the week. Significant outflows from US-based spot Bitcoin exchange-traded funds (ETFs) over the past five days have weighed heavily on bullish sentiment.
On Friday, Bitcoin ETFs recorded their third consecutive day of inflows, with $11.8 million on June 27. Fidelity was +$6.7 million, Bitwise $BITB +$8 million, and ARK $ARKB +$1.8 million. While Grayscale $GBTC saw an outflow of $11.4 million, while BlackRock $IBIT saw 0 movements.
Poppe predicts an Altseason, If
According to a famous cryptocurrency analyst, Michaël van de Poppe, the altcoin industry is on the verge of gaining bullish momentum against Bitcoin after more than two and a half years. The cryptocurrency analyst noticed that the ETH/BTC pair has shown some resilience against a downtrend.
Accordingly, Poppe indicated that the price of Ethereum against the US dollar will increase exponentially in the short term, as long as the ETH/BTC pair remains above 0.05.
In his X sendwonders if the next Ethereum ETF will trigger an altcoin season or if altcoins are in decline. He notes the continued negative sentiment but remains bullish on altcoins, particularly Ethereum, which he includes in his portfolio.
Despite lower expectations for the Ethereum ETF compared to the Bitcoin ETF, he believes the impact could be significant due to Ethereum’s lower stock-to-flow ratio and its deflationary nature.
Crypto Impact ETF Approval After ETH
He further elaborated on the current market sentiment which was very negative prior to the ETF approval, but since then Ethereum has rebounded more than 20% against Bitcoin. He argues that if Ethereum breaks 0.06 BTC, it could catalyze a broader altcoin rally, spurring projects within the Ethereum ecosystem such as Arbitrum and Optimism.
First, historical cycles often show weak altcoin performance in the first half of the year, followed by strong momentum and returns from June onwards, as seen with Chainlink’s notable gains in previous years.
Second, potential rate cuts by the Federal Reserve and falling Treasury yields could lead to a rapid recovery for Bitcoin once the current economic concerns resolve. He expects this to boost Bitcoin, Ethereum and the entire crypto ecosystem. Despite market corrections, van de Poppe remains confident in his investment strategy.
Future perspectives
In particular, the altcoin space has already attracted considerable attention from institutional investors, as demonstrated by the Solana ETP in Canada. Furthermore, Bitcoin’s dominance is on the verge of a major reversal, which will trigger a major rotation of crypto cash into altcoins.
You’re excited?