Altcoins are experiencing a significant downturn this week, largely influenced by Bitcoin's decline to $65,100, its lowest level in four weeks. This drop has dragged many major altcoins down, with some plummeting by over 40% in just two weeks, and certain on-chain altcoins seeing even steeper losses of up to 70%. Analyst Michaël van de Poppe, known as "Crypto Michaël," suggests that a potential rally in altcoins could occur if Bitcoin's dominance in the market reverses.
The crash can be attributed to several key factors: uncertainty surrounding the listing of Spot Ethereum ETFs despite SEC approval, and macroeconomic pressures such as lower-than-expected U.S. inflation and a strong dollar, bolstered by ECB rate cuts. These factors have created an unfavorable environment for altcoins, exacerbated by high interest rates and low liquidity.
Looking ahead, Michaël remains optimistic about a possible market rebound within the next 1-2 weeks, contingent upon a reversal in Bitcoin dominance. He emphasizes the importance of monitoring support levels for Ethereum against Bitcoin and keeping an eye on macroeconomic indicators such as dollar strength and U.S. treasury bond yields.
Stay tuned for more updates on the evolving altcoin market trends.
