Altcoins
Bullish News: Top Analysts Predict Altcoin Bottom Today as Market Poised for Recovery
In a recent social media post, renowned crypto 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 from the Federal Open Market Committee (FOMC), emphasizing their importance. potential impact in the crypto market.
The upcoming Altcoin rally? CPI data points to bullish outlook
Consumer Price Index (CPI) data revealed that US inflation fell to 3.3%, lower than expected, which it sees as bullish news for the altcoin market. CPI data is of particular importance because it influences the Federal Reserve’s decision on interest rate cuts.
Van de Poppé explain that if the CPI data was higher than expected, it would have led 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. Conversely, a lower-than-expected CPI result paves the way for a positive market reaction, as is the case today.
FOMC interest rate decisions were identified as the second important event of the day. Following the recent decision of the European Central Bank drop in ratesthere is speculation that the United States may consider similar measures.
Van de Poppe stressed the importance of Federal Reserve Chairman Jerome Powell’s speech because it could provide valuable insight into the future. Monetary Policypotentially influencing market sentiments.
Trade with caution
The altcoin and crypto markets saw notable corrections last week, led by Ethereum (ETH), the largest altcoin in the market, with a price drop of over 5%, with a historic negative correlation observed in FOMC meetings and CPI publications.
However, Van de Poppe suggested that a upward repricing could be anticipated, which could lead Bitcoin to approach its all-time high of $73,700 in the coming weeks if the FOMC adopts a dovish stance.
However, caution is required, as price developments can be misleading. In the case of a rate unchanged decision, initial downward market reactions could occur, with the true impact manifesting later.
Another market expert, Adrian Zduńczyk, offered his perspective, highlighting the tendency for prices to return to previous levels with little effect on volatility following 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 results of key economic data and FOMC decisions, analysts are watching these factors closely, anticipating a potential reversal and subsequent market recovery.
As the Ethereum ETF looks 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, seeing a significant rise of 4.1% over the past few hours, coinciding with positive CPI data and increased expectations for favorable news from the US Federal Reserve .
Featured image of DALL-E, chart by TradingView.com