The crypto market took a turn for the worse recently, with Bitcoin (BTC) dropping to its lowest price in four weeks and dragging altcoins down with it. Crypto analyst Michaël van de Poppe attributes the crash to a combination of factors:
- Uncertainty surrounding spot Ethereum ETFs: The delay in listing these ETFs is causing confusion and dampening market sentiment.
- Macroeconomic factors: Lower-than-expected inflation initially sparked hopes of a halt in Federal Reserve rate hikes, but the Fed's hawkish stance is keeping things uncertain. Altcoins tend to do well in low interest rate environments, and the current situation isn't ideal. A strong dollar is another factor putting pressure on the crypto market.
Despite the current negativity, there are reasons to be cautiously optimistic. Michaël predicts a potential market reversal within the next 1-2 weeks. He also highlights the importance of Bitcoin dominance - a reversal in Bitcoin's dominance could signal a comeback for altcoins.
The future remains unclear, but keeping an eye on Bitcoin dominance and key support levels for Ethereum could provide clues on what's to come for the altcoin mark
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