Recovery of Altcoin Markets May Be Near, Indicates Michaël van de Poppe

Cryptocurrency analyst Michaël van de Poppe recently shared an optimistic outlook on the near future of altcoin markets. In an update to his followers on the X platform, van de Poppe analyzed the impact of recent weak economic data in the United States on the crypto sector.

According to him, the disappointing data on employment in the US, which showed a rise in unemployment to 3.9% and an increase in average hourly earnings below expectations, could lead the Federal Reserve to adopt monetary stimulus measures.

“Terrible economic data -> DXY (US dollar index) down, furthermore, arguments for QE (quantitative easing) and rate cuts will increase and therefore risk in assets will increase. Bitcoin back [acima] of US$61,600. The FOMC (Federal Open Market Committee) was the lowest point for the markets and the altcoin bull market began,” the analyst explained.

Van de Poppe also projected a period of consolidation for altcoins ahead of possible new all-time highs. He estimated that the total market capitalization of altcoins could stabilize between $880 and $920 billion, setting a potential floor before a future bull run. “The total market capitalization of altcoins has generally bottomed out of this correction. I believe that between $880 and $920 billion is the area where it will stabilize, before a run towards the all-time high is on the horizon,” he stated.

The total #Altcoin market capitalization generally has seen the bottom of this correction.

I think $880-920B is the area where it’s going to stabilize, before a run towards the all-time high is on the horizon. pic.twitter.com/xhv1vRE0AW

— Michaël van de Poppe (@CryptoMichNL) May 3, 2024

Additionally, van de Poppe predicts the return of retail investors to the cryptocurrency market, driven by significant gains in altcoins. “Retail is not even in the markets, while Bitcoin is near all-time highs. When will they return? It will probably be after this summer that altcoins will start to take off. They hold altcoins, so when they start to rotate, they come back. This means you are still ahead of schedule,” commented the analyst.

At the time of publication, the price of BTC was quoted at US$64,039.68, up 0.4% in the last 24 hours.

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