Altcoins
Ethereum and Altcoins Could “Rebound Quickly” After FOMC Meeting, Trader Predicts
June 11, 2024 3:14 p.m. | 2 minutes of reading
Crypto analyst Michael van de Poppe highlighted the continued decline in altcoin prices, attributing it to market weakness and upcoming economic events.
What happened: Michaël van de Poppe tweeted that altcoins are seeing significant declines ahead of the next Federal Reserve meeting, which is a major factor. He mentioned that altcoins have undergone a substantial correction over the past week due to several reasons, including overall market weakness and lack of market conclusion. Ethereum (CRYPTO: ETH) AND F.
He also has note that the “Roaring Kitty” saga impacted altcoin prices, with some falling by more than 20%. Van de Poppe pointed out that the real reason for the correction was the upcoming CPI data release and the FOMC meeting on Wednesday, which often lead to downward momentum in crypto markets.
Van de Poppe explained that a strong dollar and continued quantitative tightening (QT) are not favorable for altcoins. He said: “In the last few times Jerome Powell has spoken, crypto markets have seen a substantial correction. » He also mentioned that markets tend to avoid risk before such events.
Why is this important: Van de Poppe’s ideas highlight the potential for altcoin prices to fall further due to economic factors. He noted that the unemployment rate has started to accelerate and economic data has weakened, while the The European Central Bank (ECB) has already started lowering rates.
The trader also pointed out that the Ethereum ETF would likely be approved soon, which could impact the market. He expressed optimism about a possible reversal, saying: “After previous FOMC meetings, markets rebounded quickly. »
He mentioned that Ethereum and Bitcoin (CRYPTO: BTC) have made significant progress following previous meetings.
Van de Poppe personally mentioned being all in on altcoins and expects a positive outcome from the FOMC and Jerome Powell’s speech, which would lead to strength in the markets. The commercial launch of Ethereum ETFs will be an additional factor in the coming weeks.
And after: The influence of Ethereum as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
Read next: Altcoins Down 70% Against Bitcoin: Here’s Why They Just Can’t Get Started
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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