As an experienced market analyst, I have seen numerous market cycles and trends in the crypto space. The current situation with altcoins crashing while bitcoin consolidates around 10% away from its all-time high is a common occurrence during bear markets or periods of uncertainty.
Bitcoin continues to hover around 10% below its record peak, signifying a period of stability. On the other hand, many alternative cryptocurrencies are experiencing significant declines, erasing much of their value growth during the March crypto market surge.
Calls for altseason have diminished, and the overall crypto market and social sentiment are low.
As a market analyst with experience at MN Trading, I’ve identified several contributing factors to the recent bearish trend in altcoins, as expressed by my colleague Michaél van de Poppe on June 15.
As an analyst, I’ve noticed that the altcoin market is experiencing a downturn, and the broader crypto market is following a bearish trend. However, it’s important to remember that market trends don’t always last forever. While it’s impossible to predict with certainty what will happen next, historical data suggests that bear markets are typically followed by bull markets. Therefore, it might be worth considering potential buying opportunities during this downturn for those with a long-term investment horizon. Of course, this is just one perspective, and it’s essential to conduct thorough research before making any investment decisions.
In this video, I delve into the reasons for the current slump and discuss possibilities for an upturn.
Don’t miss it!
— Michaël van de Poppe (@CryptoMichNL) June 16, 2024
Reasons Why Altcoins Are Down
Ethereum often sets the pace for the altcoin sector, experiencing a 10% decline since late May. The upcoming Ethereum-based exchange-traded funds (ETFs) are shrouded in uncertainty as they’ve been given the green light but haven’t started trading yet.
As a researcher, I’ve noticed an intriguing development in the cryptocurrency market: there are rumors that Exchange-Traded Funds (ETFs) for Ethereum (ETH) could launch as soon as July. This potential milestone could significantly impact altcoins. Here’s why:
“According to the analyst, there will be many more events unfolding in the Ethereum community. Additionally, nearly every cryptocurrency can be classified as a commodity.”
One influential aspect affecting the value of alternative cryptocurrencies is the consistent release of US economic data and unyielding inflation levels. Due to these circumstances, the Federal Reserve has been unable to lower interest rates further.
As a researcher studying the cryptocurrency market, I’ve observed that altcoins tend to thrive during times of increased liquidity in the global economy, such as those brought about by quantitative easing and low interest rates.
In my experience as a market analyst, I’ve observed that altcoins tend to perform well when borrowing costs are minimal and interest rates are low.
BTC Dominance High
As a crypto investor, I’ve noticed the recent downturn in the market, but I believe this trend won’t persist. Another crucial aspect to consider is Bitcoin’s dominance within the cryptocurrency market. Currently, Bitcoin holds a dominant position at 55.4%, and its dominance has been on the rise since December, according to Tradingview.
As a researcher studying the cryptocurrency market, I believe the imminent listing of an Ethereum Exchange-Traded Fund (ETF) is a strong indicator that the current high dominance of Bitcoin in the market may soon shift. It’s highly probable that we will witness a rotation of funds from Bitcoin to Ethereum and other altcoins, resulting in a decrease in Bitcoin’s relative share of the total cryptocurrency market capitalization.
On June 15, 202x, cryptocurrency trader ‘cyclop’ posted an observation. In that post, he pointed out that the peak of altcoins occurred 546 days following the halving event in the previous two market cycles.
“If the cycle repeats, now is your last chance to buy the dip before alts will go parabolic.”
In the past 2 cycles, altcoins peaked exactly 546 days post-halving.
If the cycle repeats, now is ur last chance to buy the dip before alts will go parabolic.
But u need to buy the right alts to make not 2x, but 100x.
Here are my currect picks
— (@nobrainflip) June 15, 2024
The total cryptocurrency market capitalization stayed constant at approximately $2.54 trillion throughout the weekend as reported by CoinGecko. Bitcoin has remained inside its price range, while the majority of alternative coins have continued to drop in value.
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2024-06-17 09:31