Altcoins
Legendary Crypto Analyst Says Altcoin Could Hit Bottom Today, Be Watchful!
Amid the current crypto market decline, many digital currencies fell today, losing their recent gains. Meanwhile, Pioneer Cryptocurrency Bitcoin (BTC) saw its price drop to $66,700, with Ethereum (ETH) at $3,523, Solana (SOL) at $152, and Ripple (XRP) at $0.48.
Prominent cryptocurrency analyst Michael van de Pop believes that today could be a big day for altcoinsperhaps signaling a turnaround amid several important economic events, including upcoming news on the Consumer Price Index (CPI), the Federal Open Market Committee (FOMC) meeting and the decision of the Federal Reserve on interest rates.
Historical trends offer hope
According to van de Pop, the events happening today could have a big impact on the markets, especially the crypto sector. He notes that before major economic events like these, cryptocurrency prices often decline.
He further points out that recent events such as the Roaring Kitty event and the GameStop correction last week did not have a positive effect on price action.
Looking at past FOMC meetings, van de Pop points out that after these meetings, Bitcoin and Ethereum have experienced significant increases in value, providing optimism during difficult market times.
Key expectations for CPI data
Key events of the day include the CPI release and FOMC rates decision. CPI data, which indicates changes in prices of goods and services, is closely monitored by the FOMC to gauge inflation levels and potential interest rate adjustments.
Van de Pop describes market expectations regarding CPI data,
- CPI Y/Y: 3.4% expected
- CPI M/M: 0.1% expected
- Core CPI Y/Y: 3.5% expected
- Core CPI M/M: 0.3% expected
Powell’s speech expected
The impending FOMC rate decision, scheduled for 8:00 p.m. CET, is a pivotal move for the market. However, Van de Pop highlights the impact of the Federal Reserve Chairman Jerome Powell’s speech, which has the potential to offer valuable insights into future monetary policy decisions.
He predicted that a neutral FOMC stance could trigger positive market reactions, particularly in the crypto sphere.
Altcoin market rebound potential
Despite the potential for market volatility, van de Pop urges caution and suggests monitoring movements in gold prices, the US dollar and Treasury yields for indications on market sentiment.
As the day progresses, all eyes will be on the CPI data release and subsequent FOMC meeting, poised to shape the trajectory of the crypto market in the days to come.