Key facts: Altcoins could outperform bitcoin in the remainder of the bull cycle. If ether (ETH) ETFs were approved, the altcoin market would skyrocket. A new report from market analyst Michaël van de Poppe considers that, currently, “investing in altcoins is the best thing to do” within the world of cryptocurrencies. The trader points out that altcoins—on average—have lost 70% of their value against bitcoin (BTC) in the last three months, while sentiment is very bearish. He therefore maintains that, although it may seem strange, this moment may present a purchasing opportunity at low prices. The analyst deepens that, After a strong movement of bitcoin, one of the cryptocurrency of Ethereumether (ETH) and then altcoins in general. “Technically, that didn't change and it wasn't different during this cycle,” he says. It should be noted that altcoins are cryptocurrencies without including bitcoin. Van de Poppe indicates that the valuations of many altcoins (with their prices measured in bitcoin) showed momentum in the last year until the approval of BTC exchange-traded funds (ETFs) in the United States. However, he notes that this was completely reversed later. According to him, this reversal is partly due to the fact that investors and speculators decided to exchange their altcoins for bitcoin to obtain a higher return. As a consequence, he mentions that this led to the rise of BTC to a new all-time high price around USD 73,700 two months ago. “[El mercado de altcoins] “It is being driven by negative news, while there is also a lot of positive news that is simply not receiving attention at the moment,” comments the specialist about the altcoin market. It is worth clarifying that van de Poppe's statements were made before the (apparently well-founded) rumors that indicated that ether (ETH) ETFs would be approved this week in the United States. If that were to truly happen, it could be the catalyst that drives the cryptocurrency market higher, beyond bitcoin. Furthermore, van de Poppe mentions that, after the strength of bitcoin, there was a rotation of this asset towards the dollar, which caused the price of the digital currency to decline. He attributes this to the comments of Jerome Powell, the president of the Federal Reserve (Fed), who suggested that there will be no interest rate cut during 2024. So, “this is the moment in which the worst is already discounted,” he considers. the analyst. For him, “investors and speculators could begin to see that there is a huge opportunity in having altcoins instead of bitcoin.” Therefore, This profit-seeking practice can lead to price increases. He further maintains that, “if Ethereum is not classified as a security, it is a starting point for a wide variety of projects to not be called that either.” In his opinion, that would imply the beginning of strength in the altcoin markets.
Michaël van de Poppe is optimistic about the altcoin market. Source: Crypto Michaël.
Important weeks are coming for altcoins
Van de Poppe warns that “the next few weeks will be important, as they will provide relevant information on how Ethereum will be classified from the SEC's point of view.” According to the specialist, it is key to see the agency's decision given the deadlines of May 23 and 24 to give the verdict on two ETH ETF proposals. He also recommends keeping an eye on the US Congress' vote on the FIT21 bill between May and June. He clarifies that this should provide a regulatory framework for cryptocurrencies. In addition to this, he points out that the SEC's lawsuit against Ripple, the issuing company of the crypto asset (security). Therefore, The achievement of these developments could lead to an overall altcoin market boost. However, while some see it as convenient to wait to see its impact before deciding whether to operate, for van de Poppe the time is sooner.
“Investments should be made during periods of least certainty. Why? That is where the greatest amount of opportunity cost can be generated (…). If you feel very insecure about buying a particular asset and the whole feeling is that way, it is usually the best time to do it.” Michaël van de Poppe, CIO and founder of the trading advisory company, MN Trading Consultancy.
Other analysts stay away from altcoins
From a different position, the market analyst Ryan Wilday has revealed that he is flattening his ETH positions to increase his BTC positions.. The reason is that it is showing lower performance. “I will change my view and return to trading ether aggressively once the ETH-BTC pair establishes itself better,” she said. For Wilday, ETH will end this cycle with a higher return than BTC, as many altcoins tend to do due to their lower capitalization. Nevertheless, Until you see that your market begins to strengthen, you prefer to stay on the sidelines to avoid unwanted scenarios.. The events that have occurred in the last few hours with ETH could, perhaps, change Wilday's mind. Given such visions, the coexistence of various opinions on the future of the bitcoin and cryptocurrency market is exhibited, as well as the possible ways of operating. However, any investor should do his or her own research before making any trade. The analyst opinions reported here should in no way be considered an investment recommendation.