Ethereum
Why Ethereum Could Lead the Next Altcoin Rally?
The cryptocurrency market has turned bearish in the medium term as The price of Bitcoin (BTC) fell below $61,000 during the week. Notable outflows from US-based spot Bitcoin exchange-traded funds (ETFs) over the past five days have weighed heavily on bullish sentiments.
Friday, Bitcoin ETF Investors saw their third consecutive day of inflows, with $11.8M on June 27. Fidelity saw +$6.7M, Bitwise $BITB +$8M, and ARK $ARKB +$1.8M. While Grayscale $GBTC saw an outflow of $11.4M, BlackRock $IBIT saw no movement.
Poppe plans an alternative season, if
According to a highly regarded crypto analyst, Michaël van de Poppe, the altcoin industry is about to gain momentum against Bitcoin after more than two and a half years. 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 one 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 deflationary nature.
Crypto Impact After ETH ETF Approval
He also delved into the current market sentiment, which was very negative before the ETF approval, but Ethereum has since rebounded over 20% against Bitcoin. He argues that if Ethereum breaks 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 rate cuts from the Federal Reserve and falling Treasury yields could lead to a rapid recovery in Bitcoin once current economic concerns are resolved. 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
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 of cryptocurrencies in favor of altcoins.
Are you excited?
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