Renowned cryptocurrency analyst Michael van de Poppe continues to support altcoins for an impressive bullish performance in the coming months. in New X post on Saturdaythe veteran analyst delves into the reasons behind his call for investing in altcoins ahead of the highly anticipated crypto rally.
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In his latest bullish forecast on altcoins, Van de Poppe begins by saying that these tokens may not represent the most ideal investment especially considering that their combined value has fallen by 70% against Bitcoin in the past three months.
The analyst attributed this poor performance to several factors including delays in network updates and an extended bear market. In addition, Van de Poppe also points to Ethereum's current difficulties as a major contributor to this market downturn.
He explains that the bullish hype for cryptocurrencies typically moves from Bitcoin to Ethereum, followed by large-cap tokens, then mid-cap tokens and small cap tokens.
However, this cycle appears to be seeing some delay due to the bearish cloud over Ethereum, driven by uncertainty over the approval of the proposed spot-traded fund (ETF) as well as its asset class.
However, Van de Poppe believes this delay is entirely temporary as he assumes that market traders are currently pricing in any potential negative impact from the rejection of the Ethereum Spot ETF or the classification of the prominent altcoin as securities.
Once Ethereum begins an upward trajectory, Van de Poppe expects other altcoins to follow suit. The analyst predicts that some tokens could post 1,000% gains as seen from October 2023 to February 2024, amid the hype around Bitcoin ETFs.
However, the analyst urges investors to buy into the altcoin market now during the “lowest confidence” period. He believes that such an act is similar to investing in Bitcoin at $3,700 at the beginning of 2020, thus ensuring that investors make maximum profits in the upcoming uptrend.
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As the weeks continue to progress, approval of an Ethereum Spot ETF by the US Securities and Exchange Commission (SEC) appears highly uncertain.
This sentiment is due to the committee's ongoing deliberations on whether to classify Ethereum as a security as well as the lack of dialogue between the agency and potential issuers. The next deadline is May 23/May 24, when the SEC will respond to two ETF applications, with many analysts anticipating further delays. From the committee.
At the time of writing, Ethereum is trading at around $3,123.39, reflecting a 0.53% increase in the last day.
Featured image from Business Insider, chart from Tradingview