Altcoins
Why Ethereum Could Lead the Next Altcoin Rally?
The cryptocurrency market has turned bearish in the medium term Bitcoin (BTC) Price fell below $61,000 during the week. Notable outflows from U.S.-based Bitcoin cash exchange-traded funds (ETFs) over the past five days weighed heavily on bullish sentiments.
Friday, Bitcoin ETF saw its 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 movement.
Poppe is planning an alternative season, if
According to popular crypto analyst Michaël van de Poppe, the altcoin industry is about to gain bullish momentum against Bitcoin after more than two and a half years. The crypto analyst note that the ETH/BTC pair has shown some resilience in the face of a downtrend.
As a result, 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 maintains above 0.05.
In his X jobhe wonders if the next Ethereum ETF will trigger an altcoin season or if altcoins are in decline. He notes the lingering 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.
Impact of Cryptocurrency After ETH ETF Approval
He then delved deeper into current market sentiment, which was very negative before the ETF was approved, but Ethereum has since rebounded over 20% against Bitcoin. He argues that if Ethereum rises above 0.06 BTC, it could catalyze a broader altcoin rally, boosting projects within the Ethereum ecosystem like Arbitrum and Optimism.
First, historical cycles often show weak altcoin performance in the first half of the year, followed by strong momentum and strong returns starting in June, as shown by Chainlink’s significant gains in previous years.
Second, potential interest rate cuts from the Federal Reserve and falling Treasury yields could lead to a rapid recovery in Bitcoin once current economic concerns subside. He expects this to boost Bitcoin, Ethereum, and the entire crypto ecosystem. Despite the market corrections, van de Poppe remains confident in his investment strategy.
Future prospects
Notably, the altcoin industry has already attracted the attention of institutional investors, as evidenced by the Solana ETP in Canada. Additionally, Bitcoin dominance is about to see a major reversal, which will trigger an increased rotation out of cryptocurrencies in favor of altcoins.
Are you excited?
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